Spear Street signs $21.8M initial loan with Voya for recent purchase in SoHo

UPDATED: Spear Street Capital through the entity 2 Crosby Owner LLC as borrower signed a initial loan with lender Voya Investment Management through the entity Security Life of Denver Insurance Company valued at $21.8 million for the office building (O5) at 2 Crosby Street also known as 30-32 Howard Street in SoHo, Manhattan.
The deal closed on April 11, 2024 and was recorded on April 16, 2024. The prior lender was Webster Bank which held debt that had an original loan amount of $34.2 million.
The property has 30,034 square feet of built space and 181 square feet of additional air rights for a total buildable of 30,230 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $725 and the price per buildable square foot is $721 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
Spear Street Capital bought the property on October 5, 2023, for $48.1 million. The signatory for Spear Street Capital was John Grassi. The $34.2 million Webster Bank loan was satisfied shortly after the sale. This new loan was signed six months after the sale.

The property

The office building with 1 residential units in SoHo has 30,034 square feet of built space and 181 square feet of additional air rights for a total buildable of 30,230 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 119 feet deep with a total lot size of 6,046 square feet. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $12.8 million. The most recent loan totaled $34.2 million and was provided by Webster Bank on January 13, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received seven DOB violations and $2,350 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 23, 2018. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 122,499 square feet of the 230,963 square feet. The largest owner is United American Land, followed by Tokyo Trust Capital and then Spear Street Capital.
There are no active new building construction projects on this tax block.

The majority, or 67 percent of the 230,963 square feet of built space are office buildings, with retail buildings next occupying 21 percent of the space.

The borrower

The PincusCo database currently indicates that Spear Street Capital owned at least three commercial properties in New York City with 256,570 square feet and a city-determined market value of $134.9 million. (Market value is typically about 50% of actual value.) The portfolio has $212.1 million in debt, borrowed from Bank of America. Within the portfolio, the bulk, or 70 percent of the 256,570 square feet of built space are office properties, with retail properties next occupying 30 percent of the space. They are all located in Manhattan.

Correction: The neighborhood was incorrectly identified as Little Italy and has been corrected to SoHo.

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