Two Trees Management signs $98M refi with JPMorgan Chase for office in Dumbo, up from $85M

Two Trees Management through the entity 45 Main Associates LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $98 million for the office building (O6) at 45 Main Street in DUMBO, Brooklyn.
The deal closed on May 2, 2024 and was recorded on May 9, 2024. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $85 million.The property has 476,000 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $205 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 Two Trees Management was Amish Patel. The signatory for JPMorgan Chase was Natalya M. Robles.

The property

The office building in DUMBO has 476,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 201 feet and is 244 feet deep with a total lot size of 48,950 square feet. The lot is irregular. The zoning is M1-2/R8A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 6.02 times FAR for residential with inclusionary housing. The property is in the DUMBO Historic District. The city-designated market value for the property in 2022 is $115 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 $2,325 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 27, 2020. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In DUMBO, The majority, or 56 percent of the 4.3 million square feet of commercial built space are office buildings, with elevator buildings next occupying 36 percent of the space. In sales, DUMBO has the 47th highest sale turnover among other neighborhoods in Brooklyn with $11.3 million in sales volume in the last two years. For development, DUMBO has had very little major development activity relative to other neighborhoods.It had 193,715 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

All properties are office.

The borrower

The PincusCo database currently indicates that Two Trees Management owned at least 27 commercial properties with 1,265 residential units in New York City with 2,803,419 square feet and a city-determined market value of $671.5 million. (Market value is typically about 50% of actual value.) The portfolio has $1.4 billion in debt, with top three lenders as Wells Fargo, M&T Bank, and JPMorgan Chase respectively. Within the portfolio, the bulk, or 45 percent of the 2,803,419 square feet of built space are elevator properties, with office properties next occupying 44 percent of the space. The bulk, or 90 percent of the built space, is in Brooklyn, with Manhattan next at 10 percent of the space.

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