Yosef Nazar signs $12M refi for three properties in Garment District

Yosef Nazar through the entity 130 West 37th Street Assets LLC as borrower signed a refi loan with lender Bank Hapoalim valued at $12 million for three properties including the retail building (O6) at 36 West 36th Street in Garment District, Manhattan, office building (O5) at 130 West 37th Street in Garment District, Manhattan, and retail building (K2) at 976 Sixth Avenue in Garment District, Manhattan.
The deal closed on May 5, 2023 and was recorded on May 15, 2023. The prior lender was Bank Hapoalim which held debt that had an original loan amount of $12 million. The three properties have 27,811 square feet of built space and 30,555 square feet of additional air rights for a total buildable of 58,370 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $431 and the price per buildable square foot is $205 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 Yosef Nazar was Yosef Nazar. The signatory for Bank Hapoalim was Peter Durichko.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 36 West 36th Street.

Prior sales and revenue

The three properties with a total of 27,811 square feet of built space generated revenue of $1.7 million per year or $62 per square foot.

The property

The retail building in Garment District has 27,811 square feet of built space and 30,555 square feet of additional air rights for a total buildable of 58,370 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 98 feet deep with a total lot size of 1,975 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $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 not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the three 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 Garment District, The majority, or 69 percent of the 51.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 2.5 times the average sales volume among other neighborhoods with $886.6 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Garment District has 3.1 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Manhattan. It had 3.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On the tax block of 36 West 36th Street, PincusCo has identified the owners of 11 of the 33 commercial properties representing 658,651 square feet of the 1,436,912 square feet. The largest owner is Toni Park, followed by Rosen Equities and then Kiamie Properties.
There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 1.4 million square feet of built space are office buildings, with hotel buildings next occupying 43 percent of the space.

The borrower

The PincusCo database currently indicates that Yosef Nazar owned at least one commercial property in New York City with 12,518 square feet and a city-determined market value of $4.2 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Manhattan.

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