Stellar Management signs $80M refi with New York Community Bank for office in NoMad

Stellar Management through the entity Croisic Building, LLC as borrower signed a loan with lender New York Community Bank valued at $80 million for the office building (O3) at 218 to 220 Fifth Avenue in NoMad, Manhattan.
The deal closed on October 17, 2022 and was recorded on October 28, 2022. The property has 150,888 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $530 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 PincusCo database currently indicates that Stellar Management owned at least 84 commercial properties with 10,293,790 square feet, 7,987 residential units and a city-determined market value of $1.5 billion. (Market value is typically about 50% of actual value.) The portfolio has $1.9 billion in debt, with top three lenders as Goldman Sachs, New York Community Bank, and Signature Bank respectively. Within the portfolio, the bulk, or 76 percent of the 10,293,790 square feet of built space are elevator properties, with office properties next occupying 8 percent of the space. The bulk, or 79 percent of the built space, is in Manhattan, with Bronx next at 11 percent of the space.

Prior sales and revenue

The 150,888-square-foot property generated revenue of $10 million or $66 per square foot, according to the most recent income and expense figures.

The property

The 218 to 220 5th Avenue parcel has frontage of 56 feet and is 127 feet deep with a total lot size of 7,112 square feet. The lot is irregular. The zoning is C5-2 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Madison Square North Historic District. The city-designated market value for the property in 2022 is $38.2 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 received one DOB violation, $8,750 in ECB penalties, and $10,000 in OATH penalties 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 NoMad, the majority, or 63 percent of the 13.5 million square feet of commercial built space are office buildings, with hotel buildings next occupying 18 percent of the space. In sales, NoMad has 1.9 times the average sales volume among other neighborhoods with $667.2 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, NoMad has had very little major development activity relative to other neighborhoods.It had 628,978 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 33 commercial properties representing 507,838 square feet of the 1,922,355 square feet. The largest owner is JPMorgan Asset Management, followed by S.W. Management and then PTS America.
There are no active new building construction projects on this tax block.

The majority, or 69 percent of the 1.9 million square feet of built space are office buildings, with elevator buildings next occupying 25 percent of the space.

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