United Investment Portugal signs $130M refi loan with MSD Partners for hotel in Hell’s Kitchen

United Investment Portugal through the entity 42nd And 10th Hotel, LLC as borrower signed a refi loan with lender MSD Partners through the entity Msd Rcof Partners XLV, LLC valued at $130 million for the hotel condo unit at 570 10th Avenue in Hell’s Kitchen, Manhattan.
The deal closed on January 13, 2023 and was recorded on January 26, 2023. The prior lender was AllianceBernstein which held debt that had an original loan amount of $115 million. The property has 207,007 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $627 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 June 1, 2011, for $263 million. The signatory for United Investment Portugal was Carlos Leal. According to the company website, “Carlos Leal is the General Manager of United Investment Portugal (UIP) spearheading the company’s overall strategy and operations. Founded in 1985…”

The property

The condo unit has a total lot size of 207,007 square feet. The city-designated market value for the property in 2022 is $71.3 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 not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot. On the tax lot, the most recent condominium plan was filed by SCG MIMA TOWERS LLC to create 151 residential units in a building at 460 West 42nd Street in Hell’s Kitchen, Manhattan, called Towers Units At Mima Condominiumthat has a $420.4 million sellout, according to an July 8, 2015 submission to the New York State Attorney General.The principal of the sponsor, SCG MIMA TOWERS LLC, was Lei Shi.

The neighborhood

In Hell’s Kitchen, the bulk, or 39 percent of the 41.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Hell’s Kitchen has 4 times the average sales volume among other neighborhoods with $1.4 billion in sales volume in the last two years and is the 9th highest in Manhattan. For development, Hell’s Kitchen has 3.6 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Manhattan. It had 3.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 22 commercial properties representing 458,550 square feet of the 1,356,417 square feet. The two identified owners are Related Companies and Brodsky Organization.
There are no active new building construction projects on this tax block.

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