Tishman Realty signs $14.8M refi for 150-unit dev site in Gramercy

Tishman Realty through the entity East 16th Street Owner LLC as borrower signed a loan with lender Popular Bank through the entity Banco Popular de Puerto Rico valued at $14.8 million for the 150-unit development site at 112 East 16th Street in Gramercy, Manhattan.

On the lot, there is one active new building construction project for a 150-unit, 110,142 square-foot residential (R-2) building. The project was submitted by Tishman Realty and filed by Dan Unger with plans filed February 16, 2023 and it has not been permitted yet.

The deal closed on November 29, 2023 and was recorded on December 14, 2023. The prior lender was Wells Fargo which held debt that had an original loan amount of $17.5 million.The property has 50,174 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $294 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 owner bought the property on March 24, 2015, for $35 million. The signatory for Tishman Realty was Nazar Altun. The signatory for Popular Bank was Jorge E. Irigoyen Gutierrez.

The property

The industrial building in Gramercy has 50,174 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 64 feet and is 103 feet deep with a total lot size of 6,660 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $11.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation in the last year.

The neighborhood

In Gramercy, The bulk, or 31 percent of the 11.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 24 percent of the space. In sales, Gramercy has 1.3 times the average sales volume among other neighborhoods with $443.4 million in sales volume in the last two years and is the 27th highest in Manhattan. For development, Gramercy has near average amount of major developments among other neighborhoods and is the 25th highest in Manhattan. It had 872,939 square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 20 commercial properties representing 283,420 square feet of the 663,960 square feet. The largest owner is Samco Properties, followed by Lee Strasberg Theatre & Film Institute and then Kano Real Estate Investors.
On the tax block, there was one new building construction project filed totaling 110,142 square feet. It is a 150-unit, 110,142 square-foot residential (R-2) building submitted by Tishman Speyer and filed by Dan Unger with plans filed February 16, 2023 and it has not been permitted yet.

The majority, or 72 percent of the 663,960 square feet of built space are office buildings, with specialty buildings next occupying 8 percent of the space.

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