Washington Square Partners signs $53.8M refi with 3650 REIT for retail, office in Marble Hill

Washington Square Partners through the entity 3650 Real Estate Investment Trust 2 LLC as borrower signed a refi loan with lender 3650 REIT through the entity 3650 Reit Warehouse Facility Entity 2a LLC valued at $53.8 million for four properties including the retail building (K6) at 40 West 225th Street in Marble Hill, Manhattan, retail condo at 90 West 225th Street in Marble Hill, Manhattan, and office condo at 90 West 225th Street in Marble Hill, Manhattan.
The deal closed on February 29, 2024 and was recorded on March 7, 2024. The four properties have 130,806 square feet of built space and 208,610 square feet of additional air rights for a total buildable of 282,846 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $410 and the price per buildable square foot is $190 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 Washington Square Partners was Paul Travis. The signatory for 3650 REIT was Tobin Cobb.

The property

The retail building in Marble Hill has 130,806 square feet of built space and 208,610 square feet of additional air rights for a total buildable of 282,846 square feet according to a PincusCo analysis of city data. The parcel has frontage of 139 feet and is 550 feet deep with a total lot size of 111,084 square feet. The lot is irregular. The zoning is C8-3 which allows for up to 2 times floor area ratio (FAR) for commercial. The city-designated market value for the property in 2022 is $18.3 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 four DOB violations and $300 in OATH penalties in the last year.

Development

For the tax lot buildings, three out of the four 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 Marble Hill, The majority, or 61 percent of the 2.5 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Marble Hill has the 39th highest sale turnover among other neighborhoods in Manhattan with $61.6 million in sales volume in the last two years. For development, Marble Hill has had very little major development activity relative to other neighborhoods.It had 16,595 square feet of commercial and multi-family construction under development in the last two years, which represents 0.66 percent of the neighborhood’s built space.

The block

On the tax block of 40 West 225th Street, PincusCo has identified the owners of 32 of the 92 commercial properties representing 1,624,835 square feet of the 2,632,258 square feet. The largest owner is Vistria Group, followed by Langsam Property Services and then City Of New York.
On the tax block, there were eight new building construction projects totaling 74,357 square feet. The largest is a 39-unit, 28,402 square-foot residential (R-2) building submitted by Chafia Capital Partners and filed by James Kwon with plans filed October 16, 2018 and it has not been permitted yet. The second largest is a 24-unit, 17,776 square-foot residential (R-2) building submitted by Jim Kwon with plans filed April 20, 2022 and it has not been permitted yet.

The majority, or 59 percent of the 2.6 million square feet of built space are elevator buildings, with walkup buildings next occupying 20 percent of the space.

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