William Kaufman Org. signs $71M rehab construction loan for office building in Midtown East

The William Kaufman Organization through the entity 767 Third Avenue LLC as borrower signed a rehab construction loan with lender Bank of America valued at $71 million for the office building at 767 Third Avenue in Midtown East, Manhattan.
The deal closed on December 17, 2021 and was recorded on January 14, 2022. The prior lender was Apple Bank for Savings which held debt that had an original loan amount of $66 million.
The property has 286,212 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $248 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 William Kaufman Organization was Jonathan Iger. The signatory for Bank of America was Jose Garcia.
The 286,212-square-foot property generated revenue of $16 million or $56 per square foot, according to the most recent income and expense figures.

Over the past five years, there have been 15 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 15 renovation/alteration projects (A2) applied for with a total estimated value of $15.4 million. One of the projects were to change the building from a COM to a B and were permitted on December 30, 2015.
This is a rehab construction loan composed of a $71 million refinance loan, an $18 million building loan and a $33.99 million project loan. Iger is CEO of Sage Realty, which is the management arm of William Kaufman Organization.
In Midtown East, the majority, or 77 percent of the 65.7 million square feet of built space are office buildings, with residential elevator buildings next occupying 8 percent of the space. In sales, Midtown East has 4 times the average sales volume in the city with $1.1 billion in sales volume in the last two years and is the 10th highest in Manhattan. For development, Midtown East has 4 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Manhattan. It had 3.6 million square feet of commercial construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.
On the tax block, the majority, or 88 percent of the 1.7 million square feet of built space are office buildings, with residential elevator buildings next occupying 10 percent of the space.
Within a 400-foot radius of 767 Third Avenue, PincusCo identified 10 commercial real estate items of interests occurred over the past 24 months.
Of those 10 items, five were for major renovation including a certificate of occupancy change. They were two permit applications with a total initial cost of $1.2 million, two permits with a total initial cost of $15.7 million and one initial temporary certificate of occupancy issuance for a project that initially costed $907,800. The most recent of these five items was the filing on November 29, 2021 for a 6,444-square-foot B building with 0 residential units at 244 East 48th Street.
Of those 10 items, two were sales above $5 million totaling $65.6 million. The most recent of the two was AEW Capital Management which bought the 114,500-square-foot, 211-unit hotel (H3) on 144 East 48th Street for $49.9 million from Stonebridge Companies on June 16, 2021.
Of those 10 items, three were loans above $5 million totaling $59.5 million. The most recent of the three was Angelo A. Federico which borrowed $6.5 million from Flushing Bank secured by the 21,400-square-foot, one-unit industrial (M9) on 153 East 48th Street on March 3, 2021.

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