Think Properties NYC signs $23.5M refi with Axos Bank for two hotel properties in Park Avenue South

Think Properties NYC through the entity 35 East 32 Realty LLC as borrower signed a refi loan with lender Axos Bank valued at $23.5 million for two hotel properties including the hotel building (H3) at 32 East 32nd Street in Park Avenue South, Manhattan and hotel building (H3) at 35 East 32nd Street in Park Avenue South, Manhattan.
The deal closed on November 2, 2022 and was recorded on November 4, 2022. The prior lender was Popular Bank which held debt that had an original loan amount of $26.5 million.The two properties have 61,394 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $382 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 Think Properties NYC was Mark Shemel. The signatory for Axos Bank was Marion Bahner.

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 32 East 32nd Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Sabah Shemel, head officer and Robert Tornello, agent. The business entity is Pinnacle Tower Realty Llc.

The property

The 32 East 32nd Street parcel has frontage of 25 feet and is 98 feet deep with a total lot size of 2,469 square feet. 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 city-designated market value for the property in 2022 is $7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $2,435 in OATH penalties in the last year.

Development

For the tax lot buildings, two out of the two buildings received a initial certificate of occupancy in the last ten years. 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 Park Avenue South, the majority, or 63 percent of the 9.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 20 percent of the space. In sales, Park Avenue South has had very little sales volume relative to other neighborhoods with $228.2 million in sales volume in the last two years. For development, Park Avenue South has near average amount of major developments among other neighborhoods and is the 24th highest in Manhattan. It had 960,317 square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On the tax block of 32 East 32nd Street, PincusCo has identified the owners of four of the 27 commercial properties representing 282,854 square feet of the 2,092,839 square feet. The largest owner is Pimco, followed by Blackstone Group and then Elijah Equities.
There are no active new building construction projects on this tax block.

The majority, or 72 percent of the 2.1 million square feet of built space are office buildings, with elevator buildings next occupying 16 percent of the space.

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