Visabe, Urban Spring, sign $24.5M construction loan for 16-unit condo in Lenox Hill

Visabe Corp. and Urban Spring Capital through the entity 439 East 77 Prop Co LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 Re 439 E77 Funding LLC valued at $24.5 million for the development at 439 East 77th Street in Lenox Hill, Manhattan.
There is a new construction project, M00943589, for a 16-unit, 28,923 square-foot residential (R-2) building submitted by Urban Spring Capital and filed by Jack Ezra with plans filed October 6, 2023 and it has not been permitted yet.
The deal closed on October 21, 2024 and was recorded on November 13, 2024. The prior lender was Visabe Corp. which held debt that had an original loan amount of $5.7 million.
The property has 14,474 square feet of built space and 14,474 square feet of additional air rights for a total buildable of 28,948 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $846 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 December 27, 2022, for $5.8 million. The signatory for Visabe Corp. and Urban Spring Capital was Salomon Cojab Moadeb. The signatory for S3 Capital was Joshua Crane. This is planned to be a condo building.

The property

The parcel has frontage of 70 feet and is 102 feet deep with a total lot size of 7,237 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 $3.3 million. The most recent loan totaled $5.7 million and was provided by Visabe Corp. on December 23, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 57,847 square feet.

The neighborhood

In Lenox Hill, The bulk, or 34 percent of the 53.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 30 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $4.5 billion in sales volume in the last two years. For development, Lenox Hill is the 7th most active neighborhood among other neighborhoods. It had 5.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 20 of the 31 commercial properties representing 280,495 square feet of the 407,449 square feet. The largest owner is Abro Management, followed by Alchemy Properties and then Caiola Family.
On the tax block, there were two new building construction projects totaling 57,847 square feet. The largest is a 16-unit, 28,923 square-foot residential (R-2) building submitted by Urban Spring Capital and filed by Jack Ezra with plans filed October 6, 2023 and it has not been permitted yet. The second largest is a 16-unit, 28,923 square-foot residential (R-2) building submitted by Urban Spring Capital and filed by Jack Ezra with plans filed October 6, 2023 and it has not been permitted yet.

The majority, or 51 percent of the 407,449 square feet of built space are walkup buildings, with elevator buildings next occupying 36 percent of the space.

The borrower

The PincusCo database currently indicates that Visabe Corp. owned at least two commercial properties with 10 residential units in New York City with 16,792 square feet and a city-determined market value of $5.2 million. (Market value is typically about 50% of actual value.) The portfolio has $11.8 million in debt, borrowed from Patch of Land, Inc. and Israel Discount Bank. Within the portfolio, the bulk, or 56 percent of the 16,792 square feet of built space are walkup properties, with N2 properties next occupying 44 percent of the space. They are all located in Brooklyn.

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