Waterfall Asset Management buys $145M note secured by dorm in Carnegie Hill

Waterfall Asset Management through the entity Wf Htmf 2021 1 LLC bought a note with an original principal of $145 million from HSBC Bank secured by 60 Guilders and RCG Longview’s dormitory building (W8) at 1760 Third Avenue in Carnegie Hill, Manhattan.
60 Guilders and RCG Longview bought the dorm in 2019 for $212.5 million, The Real Deal reported at the time.
The note sale closed on December 20, 2021 and was recorded on August 15, 2022. The property has 247,615 square feet of built space according to PincusCo analysis of city data.

The property

The 1760 Third Avenue parcel has frontage of 201 feet and is 100 feet deep with a total lot size of 20,183 square feet. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $83.7 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 $2,045 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 3, 2014. 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 Carnegie Hill, the majority, or 57 percent of the 13.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 17 percent of the space. In sales, Carnegie Hill has 3.4 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 13th highest in Manhattan. For development, Carnegie Hill has near average amount of major developments among other neighborhoods and is the 24th highest in Manhattan. It had 933,852 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 17 of the 28 commercial properties representing 163,412 square feet of the 786,546 square feet. The largest owner is Willy Wiener, followed by Sassouni Management and then Steve Srsen.
There are two active new building construction projects totaling 131,059 square feet. The largest is a 109,960-square-foot school (E) building developed by Concepcion Alvar with plans filed September 4, 2015 and permitted February 12, 2020. The second largest is a 10-unit, 21,099-square-foot R-2 building developed by Cornelius Sigety with plans filed December 20, 2012 and it has not been permitted yet.

The majority, or 40 percent of the 786,546 square feet of built space are elevator buildings, with specialty buildings next occupying 31 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 1760 Third Avenue that occurred over the past 24 months.

Direct link to Acris document. link