Two Bridges Neighborhood Council signs $29.6M refi for 109-unit rental in Lower East Side

Two Bridges Neighborhood Council through the entity Two Bridges Senior Apartments, L.P. as borrower signed a refi loan with lender Merchants Capita valued at $29.6 million for the 109-unit residential elevator building (D9) at 80 Rutgers Slip in the Lower East Side, Manhattan.
The deal closed on March 28, 2024 and was recorded on April 26, 2024. The property has 83,904 square feet of built space and 116,952 square feet of additional air rights for a total buildable of 200,950 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $353 and the price per buildable square foot is $147 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 December 29, 2005, for $9.8 million. The signatory for Two Bridges Neighborhood Council was Ditashiah Kohn.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Victor Papa, head officer and Marilyn Engstler, officer. The business entity is Two Bridges Senior Apartments Lp.

The property

The residential elevator building with 109 residential units in Lower East Side has 83,904 square feet of built space and 116,952 square feet of additional air rights for a total buildable of 200,950 square feet according to a PincusCo analysis of city data. The parcel has frontage of 192 feet and is 112 feet deep with a total lot size of 20,095 square feet. The zoning is C6-4 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 $14.3 million.

Violations and lawsuits

The property was involved in two lawsuits and zero bankruptcies over the past two years. The highest value suit was a $36 million money judgment concerning a contract filed on May 31, 2022, by None against Phipps Houses. In addition, according to city public data, the property has received six DOB violations, one housing violation, and $4,000 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 this tax block, PincusCo has identified the owners of one of the three commercial properties representing 83,904 square feet of the 355,704 square feet. The identified owner is Two Bridges Neighborhood Council.
On the tax block, there was one new building construction project filed totaling 1,134,438 square feet. It is a 815-unit, 1,134,438 square-foot residential (R-2) building submitted by Extell Development and filed by Raizy Haas with plans filed April 24, 2014 and permitted December 14, 2015.

The majority, or 97 percent of the 355,704 square feet of built space are elevator buildings, with retail buildings next occupying 3 percent of the space.

The borrower

The PincusCo database currently indicates that Two Bridges Neighborhood Council owned at least one commercial property with 109 residential units in New York City with 83,904 square feet and a city-determined market value of $14.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single elevator property. It is located in Manhattan.

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