Texas-based rug maker purchases NoMad office building for $52.5M

By Varvara Budetti

An affiliate of Texas-based rug maker Loloi Rugs purchased the 59,870-square-foot office building at 260 Fifth Avenue in NoMad, Manhattan, for $52.3 million. Company owner and head designer William Amir Loloi was the signatory for the buyer.

The deal closed on May 7, 2021 and was recorded on May 26, 2021.

Loloi, through the entity 260 Fifth Avenue LLC also signed a $30 million loan with Regions Bank for the acquisition of the building.

The area of lower Fifth Avenue in NoMad was long known as the Oriental Rug District, and after a decline around 2008 has seen a recent resurgence of rug dealers as they look to cater to e-commerce businesses and focus on key customers, according to an article in the trade publication Rug News.  For Loloi, this is a return to the area as well. The company previously had a showroom nearby at 295 Fifth Avenue but that had closed.

The sale price per built square foot is $876 according to the PincusCo analysis. The loan price per built square foot is $501 per the PincusCo analysis.

The building was last bought by Boris Kuzinez on February 4, 2016, for $59 million.

Shortly after Kuzinez purchased the 12-story building, he acquired neighboring 262 and 264 Fifth Avenue buildings for a combined $101.8 million. The Real Deal reported on what, at the time, appeared to be a “major assemblage play”. In December of 2016, the Department of Buildings approved Kuzinez’s application to demolish 262 Fifth Avenue but no other development plans had been filed.

Over the past five years, there have been 3 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 3 renovation/alteration projects (A2) applied for with a total estimated value of $352,000.

PincusCo has reached out to Loloi Rugs for comment. We have not yet heard back.

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