Toll Brothers, Sculptor Capital sign $98.2M construction loan with Bank OZK for 81-unit condo project in UWS

UPDATED: Toll Brothers and Sculptor Capital Management through the entity 2686-2690 Broadway LLC as borrower signed a new construction loan with lender Bank OZK valued at $98.2 million for development site at 2688 Broadway in Upper West Side, Manhattan.
The owners are developing the 81-unit Rockwell.
The deal closed on August 10, 2022 and was recorded on August 23, 2022. The three properties have 43,194 square feet of built space and 37,973 square feet of additional air rights for a total buildable of 81,133 square feet according to PincusCo analysis of city data. The loan price per built square foot is $2,272 and the price per buildable square foot is $1,209 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 Toll Brothers and Sculptor Capital Management was David Von Spreckelsen. Sculptor Capital Management bought a 55 percent interest in the site, valued at $51.18 million, on August 10, 2022, according to property records. The investment was originally disclosed, but not the value of the investment, in a Toll Brothers press release. 

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 one DOB violation, $17,530 in ECB penalties, and $30,430 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 73-unit, 91,763-square-foot R-2 building. The project was developed by Joseph Clark with plans filed March 23, 2020 and permitted May 11, 2022.

The neighborhood

In Upper West Side, the majority, or 59 percent of the 52.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 23 percent of the space. In sales, Upper West Side has the 4th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Upper West Side has 2.3 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 2.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On the tax block of 2688 Broadway, PincusCo has identified the owners of nine of the 20 commercial properties representing 270,253 square feet of the 504,666 square feet. The largest owner is New York City Housing Authority, followed by 2686-2690 Broadway Llc and then Roxann Management.
There is one active new building construction project totaling 91,763 square feet. It is a 73-unit, 91,763-square-foot R-2 building developed by Joseph Clark with plans filed March 23, 2020 and permitted February 3, 2022.

The majority, or 72 percent of the 492,430 square feet of built space are elevator buildings, with walkup buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that Sculptor Capital Management owned at least four commercial properties in New York City with 194,374 square feet and a city-determined market value of $29 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 78 percent of the 194,374 square feet of built space are office properties, with hotel properties next occupying 22 percent of the space. The bulk, or 78 percent of the built space, is in Queens, with Manhattan next at 22 percent of the space.
The PincusCo database currently indicates that Toll Brothers owned at least three commercial properties in New York City with 43,194 square feet and a city-determined market value of $13.9 million. (Market value is typically about 50% of actual value.) The portfolio has $76.6 million in debt, borrowed from Bank of New York Mellon. Within the portfolio, all identified are hotel properties. They are all located in Manhattan.

UPDATED: Sculptor Capital Management’s investment in the project was added to the story.

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