Tribeca Associates signs $150M initial loan with Deutsche Pfandbriefbank for office in Park Avenue South
Tribeca Associates through the entity 295 Fifth Ave Development Owner LLC as borrower signed a initial loan with lender Deutsche Pfandbriefbank valued at $150 million for the office building (O6) at 295 Fifth Avenue in Park Avenue South, Manhattan.
The deal closed on November 17, 2022 and was recorded on November 28, 2022. The property has 614,040 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $244 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 Tribeca Associates was William Brodsky.
Prior sales and revenue
The 614,040-square-foot property generated revenue of $33.6 million or $55 per square foot, according to the most recent income and expense figures.
The property
The 295 Fifth Avenue parcel has frontage of 197 feet and is 164 feet deep with a total lot size of 38,575 square feet. The lot is irregular. 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 $127.8 million.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $5,625 in ECB penalties and $49,525 in OATH penalties in the last year.
Development
On the lot, there is one active major alteration construction project for a 526,540 square-foot B building. The project was developed by Elliott Ingerman with plans filed February 18, 2020 and permitted September 24, 2020.
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 this tax block, PincusCo has identified the owners of 16 of the 31 commercial properties representing 1,967,713 square feet of the 2,448,317 square feet. The largest owner is Tribeca Associates, followed by JD Carlisle Development and then Moin Development.
On the tax block, there were four new building construction projects totaling 460,993 square feet. The largest is a 199-unit, 325,243-square-foot R-2 building developed by Evan Stein with plans filed September 11, 2014 and permitted June 21, 2016. The second largest is a 42-unit, 71,717-square-foot R-2 building developed by Erik Ekstein with plans filed February 12, 2015 and permitted March 3, 2017.
The majority, or 45 percent of the 2.4 million square feet of built space are elevator buildings, with office buildings next occupying 41 percent of the space.
The borrower
The PincusCo database currently indicates that Tribeca Associates owned at least two commercial properties in New York City with 984,040 square feet and a city-determined market value of $245.5 million. (Market value is typically about 50% of actual value.) The portfolio has $124.6 million in debt, borrowed from M&T Bank. Within the portfolio, all identified are office properties. They are all located in Manhattan.
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