Stahl Org. signs $750M refi loan with Deutsche Bank for office in Midtown East

Stahl Organization through the entity 277 Park Avenue, LLC as borrower signed a refi loan with lender Deutsche Bank through the entity German American Capital Corporation valued at $750 million for the office building at 277 Park Avenue in Midtown East, Manhattan. The property is divided into 49 commercial condominium units.
The deal closed on August 6, 2024 and was recorded on August 19, 2024. The prior lender was a trust, Comm 2014-277P, which held debt that had an original loan amount of $750 million.
The 49 properties have 1,270,270 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $590 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 signatory for Stahl Organization was Richard F. Czaja. The signatory for Deutsche Bank was Shaishav Agarwal and Alexander Egan.

The property

The office condo in Midtown East has 1,270,270 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 61,676 square feet. The city-designated market value for the property in 2022 is $39.3 million.

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 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 $1 million on this tax lot.

The neighborhood

In Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 2nd highest sale turnover among other neighborhoods in the city with $3.2 billion in sales volume in the last two years. For development, Midtown East is the 2nd most active neighborhood among other neighborhoods. It had 15.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 25 percent of the neighborhood’s built space.

The block

On the tax block of 101 East 47th Street, PincusCo has identified the owners of seven of the 12 commercial properties representing 992,985 square feet of the 1,053,867 square feet. The largest owner is Island Capital Group, followed by Madison Realty Capital and then AEW Capital Management.
On the tax block, there was one new building construction project filed totaling 151,836 square feet. It is a 137-unit, 151,836 square-foot residential (R-2) building submitted by New Empire Corp. and filed by Bentley Zhao with plans filed March 28, 2016 and permitted August 12, 2021.

The majority, or 54 percent of the 1.1 million square feet of built space are hotel buildings, with elevator buildings next occupying 44 percent of the space.

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