United American Land signs $18M refi with Signature for mixed-use in Soho

United American Land through the entity 277 Associates, LLC as borrower signed a refi loan with lender Signature Bank valued at $18 million for the mixed-use building at 277 Canal Street in Soho, Manhattan.
The deal closed on May 27, 2022 and was recorded on June 14, 2022. The prior lender was Dime Community Bank which held debt that had an original loan amount of $20 million. The property has 29,343 square feet of built space and 19,562 square feet of additional air rights for a total buildable of 48,905 square feet according to PincusCo analysis of city data. The loan price per built square foot is $613 and the price per buildable square foot is $368 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 United American Land was Albert Laboz. The signatory for Signature Bank was Kenneth A. Stagnari.

Prior sales and revenue

The 29,343-square-foot property generated revenue of $2.1 million or $73 per square foot, according to the most recent income and expense figures.

The property

The 277 Canal Street parcel has frontage of 126 feet and is 62 feet deep with a total lot size of 9,781 square feet. The lot is irregular. The zoning is M1-5B which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the SoHo-Cast Iron Historic District Extension. The city-designated market value for the property in 2022 is $7 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 $750 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 5, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of five of the 24 commercial properties representing 179,652 square feet of the 467,365 square feet. The largest owner is HCRE Hung & Chong Real Estate, followed by Chetrit Group and then Stellar Management. There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 437,802 square feet of built space are office buildings, with hotel buildings next occupying 28 percent of the space.

The borrower

The PincusCo database currently indicates that United American Land owned at least 30 commercial properties with 727,805 square feet and a city-determined market value of $220.7 million. (Market value is typically about 50% of actual value.) The portfolio has $316.1 million in debt, with top three lenders as Signature Bank, Goldman Sachs, and Morgan Stanley respectively. Within the portfolio, the bulk, or 39 percent of the 727,805 square feet of built space are retail properties, with office properties next occupying 26 percent of the space. The bulk, or 45 percent of the built space, is in Manhattan, with Queens next at 28 percent of the space.

Surrounding

Within a 400-foot radius of 277 Canal Street, Pincusco identified 12 commercial real estate items of interests occurred over the past 24 months.
Of those 12 items, one was for major renovation including a certificate of occupancy change. It was a permit issued on December 18, 2020 for the $325,600 renovation of 6,502-square-foot B building with one residential units at 274 Canal Street.
Of those 12 items, four were sales above $5 million totaling $56 million. The most recent of the four was Stellar Management which bought the 18,705-square-foot, five-unit office building (O5) on 126 Lafayette Street for $7 million from DH Realty & Management on April 28, 2022.
Of those 12 items, seven were loans above $5 million totaling $192.6 million. The most recent of the seven was KLM Equities which borrowed $15 million from Dime Community Bank secured by the 23,161-square-foot, seven-unit mixed-use building (S5) on 50 Howard Street on May 18, 2022.

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