United American Land signs $23.5M refi for two properties in Tribeca

United American Land through the entity 415 Associates LLC as borrower signed a refi loan with lender Israel Discount Bank valued at $23.5 million for two properties with eight residential units including the mixed-use building (K4) at 296 Canal Street in Tribeca, Manhattan and eight-unit residential walkup building (C7) at 300 Canal Street in Tribeca, Manhattan.
The deal closed on May 8, 2024 and was recorded on May 21, 2024. The prior lender was PIMCO which held debt that had an original loan amount of $28 million.The two properties have 27,585 square feet of built space and 16,060 square feet of additional air rights for a total buildable of 43,663 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $851 and the price per buildable square foot is $538 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 Israel Discount Bank was Elena Dokianos and Avi Lieberman.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 296 Canal Street.

The property

The mixed-use buildings in Tribeca have 27,585 square feet of built space and 16,060 square feet of additional air rights for a total buildable of 43,663 square feet according to a PincusCo analysis of city data. The lot is irregular. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The property is in the Tribeca East Historic District. The city-designated market value for the property in 2022 is $9.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received five DOB violations, one housing violation, and $14,480 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. 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 Tribeca, The bulk, or 47 percent of the 15.3 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Tribeca has 1.9 times the average sales volume among other neighborhoods with $521.9 million in sales volume in the last two years and is the 16th highest in Manhattan. For development, Tribeca has 3 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 3.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 22 percent of the neighborhood’s built space.

The block

On the tax block of 296 Canal Street, PincusCo has identified the owners of six of the 16 commercial properties representing 71,236 square feet of the 123,030 square feet. The largest owner is Vornado Realty Trust, followed by Urban Standard Capital and then United American Land.
On the tax block, there were two new building construction projects totaling 28,928 square feet. The largest is a 21-unit, 18,892 square-foot residential (R-2) building submitted by Dan Forrester with plans filed February 27, 2017 and it has not been permitted yet. The second largest is a five-unit, 10,036 square-foot residential (R-2) building submitted by Peter Matera with plans filed March 20, 2019 and it has not been permitted yet.

The majority, or 53 percent of the 123,030 square feet of built space are mixed-use buildings, with elevator buildings next occupying 39 percent of the space.

The borrower

The PincusCo database currently indicates that United American Land owned at least 49 commercial properties with 221 residential units in New York City with 956,942 square feet and a city-determined market value of $347.9 million. (Market value is typically about 50% of actual value.) The portfolio has $362.8 million in debt, with top three lenders as Signature Bank, Goldman Sachs, and Morgan Stanley respectively. Within the portfolio, the bulk, or 36 percent of the 956,942 square feet of built space are mixed-use properties, with elevator properties next occupying 23 percent of the space. The bulk, or 56 percent of the built space, is in Manhattan, with Brooklyn next at 27 percent of the space.

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