Vickers Realty signs $13M refi loan with Signature for six walkups in Manhattan

Vickers Realty through the entity 216 East 28th Street LLC as borrower signed a refi loan with lender Signature Bank valued at $13 million for six residential walkup properties including the midblock 20-unit residential walkup building at 347 East 65th Street in Lenox Hill, Manhattan, midblock 15-unit residential walkup building at 36 Morton Street in West Village, Manhattan, and midblock 15-unit residential walkup building at 34 Morton Street in West Village, Manhattan.

The deal closed on February 17, 2022 and was recorded on March 4, 2022. The prior lender was Amalgamated Bank. The six properties have 48,620 square feet of built space and 5,233 square feet of additional air rights for a total buildable of 52,764 square feet according to PincusCo analysis of city data. The loan price per built square foot is $267 and the price per buildable square foot is $246 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 Vickers Realty was Adam Vickers. The signatory for Signature Bank was Gail Naviasky. This is a mortgage spreader agreement. There is $3,191,982 of new debt for this loan.

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 347 East 65th Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Adam Vickers, head officer and Marinel Bunjaj, site manager. The business entity is 347 E 65th St Llc. The six properties with a total of 48,620 square feet of built space generated revenue of $2.4 million per year or $50 per square foot.

The property

The 347 East 65th Street parcel has frontage of 27 feet and is 100 feet deep with a total lot size of 2,711 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 $2.8 million.

Violations and lawsuits

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have received $650 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the eight buildings received an 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 $5 million on this tax lot.

The neighborhood

In Lenox Hill, the majority, or 56 percent of the 91.2 million square feet of built space are residential elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Lenox Hill has the 3rd highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Lenox Hill has had very little major development activity relative to other neighborhoods.It had 436,108 square feet of commercial and multi-family construction under development in the last two years, which represents 0.48 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On the tax block of 347 East 65th Street, PincusCo has identified the owners of seven of the 22 commercial properties representing 111,411 square feet of the 549,993 square feet. The largest owner is Janet Giaimo Vitale, followed by Michael Pasztor and then Aryeh Realty. There are no active new building construction projects on this tax block.

The majority, or 39 percent of the 708,491 square feet of built space are specialty buildings, with residential elevator buildings next occupying 29 percent of the space.

Surrounding

Within a 400-foot radius of 347 East 65th Street, Pincusco identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, two were sales above $5 million totaling $13.8 million. The most recent of the two was Michael Pasztor which bought the 10,060-square-foot, 20-unit rental (C4) on 341 East 65th Street for $5.5 million from Nicholas Dionisiou on November 16, 2020.
Of those six items, four were loans above $5 million totaling $64 million. The most recent of the four was Aryeh Realty which borrowed $15.7 million from JPMorgan Chase secured by the 29,732-square-foot, 35-unit rental (C7) on 1219 1st Avenue on January 13, 2022.

Direct link to Acris document. link