The Flag signs $28M acquisition loan with Webster Bank in Greenwich Village
The Flag through the entity 103-105 Macdougal Street LLC as borrower signed an acquisition loan with lender Webster Bank valued at $28 million for two residential walkup properties with 72 residential units including the 36-unit residential walkup building (C7) at 105 MacDougal Street in Greenwich Village, Manhattan and 36-unit residential walkup building (C7) at 103 MacDougal Street in Greenwich Village, Manhattan.
The Flag bought the properties on June 15, 2023 from Meadow Partners and Davean Holdings for $48.9 million.
The deal closed on June 15, 2023 and was recorded on June 27, 2023. The prior lender was Webster Bank which held debt that had an original loan amount of $26 million.
The two properties have 39,648 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $706 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 The Flag was Rudolf Muhr. The signatory for Webster Bank was Adam Brenner.
Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 105 Mac Dougal Street.
The property
The residential walkup building with 36 residential units in Greenwich Village has 39,648 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 134 feet deep with a total lot size of 3,373 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the South Village Historic District. The city-designated market value for the property in 2022 is $7.9 million. The most recent loan totaled $26 million and was provided by Sterling National Bank on August 24, 2021.
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 received one DOB violation, $25,000 in ECB penalties, 11 housing violations, two housing violations, and $26,150 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 block
On the tax block of 105 Mac Dougal Street, PincusCo has identified the owners of seven of the 16 commercial properties representing 75,094 square feet of the 144,511 square feet. The largest owner is The Flag, followed by Superior Management and then Kushner Companies.
There are no active new building construction projects on this tax block.
The majority, or 90 percent of the 144,511 square feet of built space are walkup buildings, with mixed-use buildings next occupying 10 percent of the space.
The borrower
The PincusCo database currently indicates that The Flag owned at least two commercial properties with 72 residential units in New York City with 39,648 square feet and a city-determined market value of $14.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Manhattan.
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