Yevgeniy Lvovskiy signs $27.5M construction loan with Fortress for 29-unit condo in Hell’s Kitchen
Yevgeniy Lvovskiy of the ZHL Group through the entity 350 West 44 LLC as borrower signed a new construction loan with lender Fortress Investment Group through the entity DB 360 LLC valued at $27.5 million for the 29-unit condominium project at 350 West 44th Street in Hell’s Kitchen, Manhattan.
The deal closed on September 29, 2023 and was recorded on October 13, 2023. The prior lender was Valley National Bank which held debt that had an original loan amount of $7 million.The property has 5,925 square feet of built space and 24,145 square feet of additional air rights for a total buildable of 30,093 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $913 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 March 4, 2022, for $14 million. The signatory for ZHL Group was Yevgeniy Lvovskiy. The signatory for Fortress Investment Group was Constantine M. Dakolias.
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Prior sales and revenue
The 5,925-square-foot property generated revenue of $387,002 or $65 per square foot, according to the most recent income and expense figures.
The property
The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 4,999 square feet. The zoning is C6-2 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential. The city-designated market value for the property in 2022 is $2.3 million. The most recent loan totaled $7 million and was provided by Valley National Bank on March 4, 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 received $19,350 in OATH penalties in the last year.
Development
On the lot, there is one active new building construction project for a 29-unit, 31,497 square-foot R-2 building. The project was submitted by Yevgeniy Lvovskiy and filed by Yevgeniy Lvovskiy with plans filed April 21, 2022 and permitted January 26, 2023. On the tax lot, the most recent condominium plan was filed by 350 West 44 LLC to create 29 residential units and 1 commercial units in a building at 350 West 44th Street in Hell’s Kitchen, Manhattan, called Lightsquare Condominium that has a $53.4 million sellout, according to an July 7, 2023 submission to the New York State Attorney General. The principals of the sponsor, 350 West 44 LLC, were Lev Berenshteyn and Yevgeniy Lvovskiy.
The neighborhood
In Hell’s Kitchen, The bulk, or 39 percent of the 40.6 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Hell’s Kitchen has 3.9 times the average sales volume among other neighborhoods with $1.4 billion in sales volume in the last two years and is the 9th highest in Manhattan. For development, Hell’s Kitchen is the 8th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space. There were two 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 12 of the 26 commercial properties representing 193,742 square feet of the 733,306 square feet. The largest owner is ZHL Group, followed by Vito Sacchetti and then Transworld Equities.
On the tax block, there were two new building construction projects totaling 66,722 square feet. The largest is a 114-unit, 35,225 square-foot hotel/dormitory/shelter (R-1) building submitted by McSam Hotel Group and filed by Sam Chang with plans filed November 26, 2014 and permitted August 26, 2015. The second largest is a 29-unit, 31,497 square-foot residential (R-2) building submitted by Yevgeniy Lvovskiy and filed by Yevgeniy Lvovskiy with plans filed April 21, 2022 and permitted January 26, 2023.
The majority, or 66 percent of the 733,306 square feet of built space are hotel buildings, with walkup buildings next occupying 9 percent of the space.
The borrower
The PincusCo database currently indicates that ZHL Group owned at least seven commercial properties with one residential unit in New York City with 48,546 square feet and a city-determined market value of $14.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 85 percent of the 48,546 square feet of built space are office properties, with industrial properties next occupying 12 percent of the space. The bulk, or 75 percent of the built space, is in Bronx, with Manhattan next at 22 percent of the space.
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