Zar Group signs $37.5M acquisition loan with Ladder Capital for retail in Greenwich Village

Zar Group through the entity 836 Broadway Partners LLC as borrower signed a acquisition loan with lender Ladder Capital through the entity Ladder Capital Finance LLC valued at $37.5 million for the retail building at 836 Broadway in Greenwich Village, Manhattan.
The deal closed on December 8, 2021 and was recorded on January 24, 2022.
The property has 56,827 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $659 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 December 8, 2021, for $39.2 million.
The signatory for Zar Group was Babak Zar.
The 56,827-square-foot property generated revenue of $2.4 million or $42 per square foot, according to the most recent income and expense figures.

The financing includes a land loan of $28.8 million and a rehab building loan of $8.7 million.
In Greenwich Village, the bulk, or 35 percent of the 34 million square feet of built space are residential elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Greenwich Village has the 10th highest sale turnover among other neighborhoods in the city with $1.3 billion in sales volume in the last two years. For development, Greenwich Village has had very little major development activity relative to other neighborhoods.It had 445,850 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.
On the tax block, the majority, or 57 percent of the 1 million square feet of built space are residential elevator buildings, with retail buildings next occupying 19 percent of the space.
Within a 400-foot radius of 836 Broadway, PincusCo identified 14 commercial real estate items of interests occurred over the past 24 months.
Of those 14 items, one was in new building development. It was a new building permit application filed on December 28, 2020 for a 30,000-square-foot R-2 building with 40 residential units at 815 Broadway.
Of those 14 items, three were for major renovation including a certificate of occupancy change. They were two permit applications with a total initial cost of $1.8 million and one initial temporary certificate of occupancy issuance for a project that initially costed $6.5 million. The most recent of these three items was the filing on January 5, 2022 for a 201,993-square-foot R-2 building with 150 residential units at 140 Fourth Avenue.
Of those 14 items, two were sales above $5 million totaling $222.9 million. The most recent of the two was RAGHSA Real Estate which bought the 236,215-square-foot, six-unit mixed-use building (K2) on 842 Broadway for $211.4 million from Related Companies on November 24, 2020.
Of those 14 items, eight were loans above $5 million totaling $336.2 million. The most recent of the eight was Related Companies which borrowed $75 million from Wells Fargo secured by the 236,215-square-foot, six-unit mixed-use building (K2) on 842 Broadway on October 1, 2021.

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