Stockbridge Capital, Stonehenge sign $73.4M refi for newly acquired rental in Yorkville

Stockbridge Capital Group and Stonehenge NYC through the entity 354 East 91 Owner, LLC as borrower signed a refi loan with lender Wells Fargo valued at $73.4 million for the midblock 163-unit residential elevator building at 354 East 91st Street in Yorkville, Manhattan.
The deal closed on April 20, 2022 and was recorded on April 29, 2022. The prior lender was Stockbridge Capital Group which held debt that had an original loan amount of $61.4 million. The property has 164,384 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $446 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 partners bought the property on February 1, 2022, for $128.2 million. The signatory for Stockbridge Capital Group was Meghan Finneran. The signatory for Wells Fargo was Brian Stafford.

Prior sales and revenue

The 164,384-square-foot property generated revenue of $8.5 million or $52 per square foot, according to the most recent income and expense figures.

The property

The 354 East 91st Street parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,067 square feet. The zoning is C2-8 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $43.4 million.The most recent loan totaled $61.4 million and was provided by Smart Markets Fund REIT on February 1, 2022.

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 $100 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on April 11, 2019. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Yorkville, the majority, or 71 percent of the 43.2 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 17 percent of the space. In sales, Yorkville has 1.4 times the average sales volume among other neighborhoods with $398.1 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, Yorkville has 1.7 times the average amount of major developments relative to other neighborhoods and is the 13th highest in Manhattan. It had 1.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 13 of the 36 commercial properties representing 337,822 square feet of the 611,832 square feet. The largest owner is Stockbridge Capital Group, followed by S.W. Management and then Randy Glick. There are no active new building construction projects on this tax block.

The majority, or 49 percent of the 614,505 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 48 percent of the space.

The borrower

The PincusCo database currently indicates that Stockbridge Capital Group owned at least one commercial property with 164,384 square feet and a city-determined market value of $48.8 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single residential elevator property. It is located in Manhattan.

Surrounding

Within a 400-foot radius of 354 East 91st Street, PincusCo identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, one was in new building development. It was a new building permit application filed on June 25, 2021 for a 103,412-square-foot storage (S-1) building at 424 East 90th Street.
Of those nine items, four were for major renovation including a certificate of occupancy change. They were two permit applications with a total initial cost of $1.9 million, one permit with a total initial cost of $400,000 and one initial temporary certificate of occupancy issuance for a project that initially costed $1 million. The most recent of these four items was the filing on December 21, 2020 for a 16,302-square-foot R-1 building with 21 residential units at 419 East 91st Street.
One of those nine items was a sale which Stahl Real Estate bought the 21,640-square-foot, 42-unit rental (C7) on 1771 1st Avenue for $22.8 million from Elie Hirschfeld Properties on May 20, 2021.
Of those nine items, three were loans above $5 million totaling $37.4 million. The most recent of the three was Hirschfeld Properties which borrowed $9.4 million from Wells Fargo secured by the 21,640-square-foot, 42-unit rental (C7) on 1771 1st Avenue on January 18, 2022.

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