William Kaufman Org., Principal Real Estate sign $121.1M refi with ACORE for FiDi office

William Kaufman Organization and Principal Real Estate Investors through the entity Water Street Leasehold LLC as borrower signed a refi loan with lender ACORE Capital through the entity Acore Capital Mortgage, LP valued at $121.1 million for the office building (O4) at 77 Water Street in Financial District, Manhattan.
The deal closed on July 26, 2022 and was recorded on August 26, 2022. The prior lender was Equitable Financial Life Insurance Company which held debt that had an original loan amount of $45 million.The property has 541,568 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $223 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 signatories for William Kaufman Organization and Principal Real Estate Investors were Kristine Soliday, Johanna Donahue, and Jonathan Kaufman Iger.

Prior sales and revenue

The 541,568-square-foot property generated revenue of $28.9 million or $53 per square foot, according to the most recent income and expense figures.

The property

The 77 Water Street parcel has frontage of 214 feet and is 121 feet deep with a total lot size of 25,779 square feet. The lot is irregular. The zoning is C6-9 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $130.5 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 one DOB violation, $5,000 in ECB penalties, and $7,250 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 Financial District, the majority, or 75 percent of the 81.3 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 9th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Financial District is the 5th most active neighborhood among other neighborhoods. It had 7.8 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.

The block

On this tax block, PincusCo has identified the owners of one of the five commercial properties representing 473,460 square feet of the 1,015,317 square feet. The identified owner is UDR, Inc..
There are no active new building construction projects on this tax block.

The majority, or 53 percent of the 1 million square feet of built space are office buildings, with elevator buildings next occupying 47 percent of the space.

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