South Korea’s IGIS is new lender for Extell supertall site in Midtown West

South Korea-based IGIS Asset Management through the entity IGIS USA LLC bought a note with an original principal of $185 million from JPMorgan Chase secured by Extell Development’s 13-parcel development site at 570 Fifth Avenue at the corner of 46th Street in Midtown West, Manhattan. Extell is expected to build a supertall skyscraper on the site.
The loan closed on July 10, 2023 and was recorded on July 31, 2023. The prior lender was JPMorgan Chase which held debt that had a most-recent loan amount of $185 million, which was down from a high of $340 million in 2019.

In June 2023, the Korean apparel manufacturing and investment firm Sae-A Trading Co. Ltd., through an LLC, filed to demolish 476 Fifth Avenue, a 57,352-square-foot office building at the corner of Fifth Avenue and 47th Street. It’s the only building on the west side of Fifth Avenue between 46th and 47th Street that developer Gary Barnett of Extell Development did not acquire in his 10-year assemblage of a potential supertall site.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received 12 DOB violations, $21,875 in ECB penalties, and $29,575 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the 13 buildings received a initial certificate of occupancy in the last ten years. On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 8,632 square feet. The largest is a new building project for a 4,790 square-foot M building submitted by Roger Merriman with plans filed June 15, 2015 and it has not been permitted yet. The second largest is a new building project for a 3,842 square-foot M building submitted by Roger Merriman with plans filed June 15, 2015 and it has not been permitted yet.

The neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 3rd highest sale turnover among other neighborhoods in the city with $2.7 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 17.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 24 percent of the neighborhood’s built space.

The block

On the tax block of 10 West 47th Street, PincusCo has identified the owners of 29 of the 41 commercial properties representing 1,034,134 square feet of the 1,198,913 square feet. The largest owner is Thor Equities, followed by Sol Goldman Investments and then Alishaev Brothers.
On the tax block, there were two new building construction projects totaling 8,632 square feet. The largest is a 4,790 square-foot mercantile (M) building submitted by Roger Merriman with plans filed June 15, 2015 and it has not been permitted yet. The second largest is a 3,842 square-foot mercantile (M) building submitted by Roger Merriman with plans filed June 15, 2015 and it has not been permitted yet.

The majority, or 78 percent of the 1.2 million square feet of built space are office buildings, with hotel buildings next occupying 8 percent of the space.

The borrower

The PincusCo database currently indicates that Extell Development owned at least 65 commercial properties with 793 residential units in New York City with 2,882,560 square feet and a city-determined market value of $763.3 million. (Market value is typically about 50% of actual value.) The portfolio has $5.5 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and Prudential Credit Opportunities respectively. Within the portfolio, the bulk, or 37 percent of the 2,882,560 square feet of built space are specialty properties, with elevator properties next occupying 28 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Brooklyn next at 4 percent of the space.

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