Spruce Capital signs $12M rehab loan for residential walkup in Lenox Hill

Spruce Capital through the entity 38 East 75 Owners LLC as borrower signed a rehab construction loan with lender First Republic Bank valued at $12 million for the nine-unit residential walkup building (C5) at 38 East 75th Street in Lenox Hill, Manhattan.
The deal closed on September 30, 2022 and was recorded on October 11, 2022. The property has 6,627 square feet of built space and 1,552 square feet of additional air rights for a total buildable of 8,172 square feet according to PincusCo analysis of city data. The loan price per built square foot is $1,810 and the price per buildable square foot is $1,468 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.)
The owner bought the property on December 17, 2021, for $8.5 million. The signatory for Spruce Capital was Robert Schwartz.

The property

The 38 East 75th Street parcel has frontage of 20 feet and is 102 feet deep with a total lot size of 2,043 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The property is in the Upper East Side Historic District. The city-designated market value for the property in 2022 is $4.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of five of the 17 commercial properties representing 43,957 square feet of the 170,413 square feet. The largest owner is Khedouri Ezair, followed by Israel Englander and then Sol Goldman Investments.
There are no active new building construction projects on this tax block.

The majority, or 48 percent of the 143,645 square feet of built space are walkup buildings, with elevator buildings next occupying 20 percent of the space.

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