Urban View signs $13M construction loan from Terra Capital for 10-unit project in Lenox Hill
Urban View Development Group through the entity 418 East 75 Street LLC as borrower signed a loan with lender Terra Capital Partners through the entity Terra Solid Capital Ltd valued at $13 million for the 10-unit project at 418 East 75th Street in Lenox Hill, Manhattan.
Robert Michaeli of Brooklyn B Company Group submitted a major alteration application for the building at 420 East 75 Street in Lenox Hill, Manhattan. The plan was filed with the New York City Department of Buildings on October 20, 2022 under job number M07997749. It calls for the increase in size of the building from a three-story building with no dwelling units to a three-story building with 10 dwelling units. The project is described in the filing as: vertical enlargement of an existing 2 story non conforming commercial use building to a 7-story residential building.
The deal closed on February 21, 2023 and was recorded on March 7, 2023. The prior lender was Tideway Capital Group which held debt that had an original loan amount of $4.5 million.
The owner bought the property on April 19, 2022, for $5.8 million. The signatory for Urban View Development Group was Nadav M. Hamo. The signatory for Terra Capital Partners was Siamak Darouvar.
Prior sales and revenue
The 6,996-square-foot property generated revenue of $413,788 or $59 per square foot, according to the most recent income and expense figures.
The property
The 418 East 75th Street parcel has frontage of 37 feet and is 102 feet deep with a total lot size of 3,831 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.6 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 $3,980 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 $5 million on this tax lot.
The neighborhood
In Lenox Hill, the bulk, or 35 percent of the 51.9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $4 billion in sales volume in the last two years. For development, Lenox Hill has 3 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Manhattan. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of 11 of the 22 commercial properties representing 134,373 square feet of the 257,740 square feet. The largest owner is Urban View Development Group, followed by Tissa Management and then S.W. Management.
On the tax block, there was one new building construction project filed totaling 128,205 square feet. It is a 31-unit, 128,205-square-foot R-2 building developed by Dmitri Konon with plans filed November 3, 2021 and permitted December 1, 2022.
The majority, or 67 percent of the 245,830 square feet of built space are walkup buildings, with elevator buildings next occupying 11 percent of the space.
The borrower
The PincusCo database currently indicates that Urban View Development Group owned at least 14 commercial properties in New York City with 108,417 square feet and a city-determined market value of $18.7 million. (Market value is typically about 50% of actual value.) The portfolio has $57.5 million in debt, with top three lenders as Terra Solid Capital, Citibank, and TriState Capital Bank respectively. Within the portfolio, the bulk, or 31 percent of the 108,417 square feet of built space are elevator properties, with specialty properties next occupying 24 percent of the space. The bulk, or 74 percent of the built space, is in Brooklyn, with Manhattan next at 22 percent of the space.
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