Zar Property NY signs $100M refi loan with Safra for two office properties in SoHo

Zar Property NY through the entity Grand Greene LLC as borrower signed a refi loan with lender Safra National Bank through the entity Safra National Bank Of New York valued at $100 million for two office properties including the office building (O5) at 42 Greene Street in SoHo, Manhattan and office building (O5) at 90 Grand Street in SoHo, Manhattan.
The deal closed on May 26, 2022 and was recorded on August 4, 2022. The prior lender was Safra National Bank which held debt that had an original loan amount of $82 million. The two properties have 93,398 square feet of built space and 7,746 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $1,070 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 Zar Property NY was Esshagh Dario Zar. The signatory for Safra National Bank was Stephan Mazzacca and Adam J. Cohen.

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 42 Greene Street.

Prior sales and revenue

The two properties with a total of 93,398 square feet of built space generated revenue of $9.8 million per year or $105 per square foot.

The property

The 42 Greene Street parcel has frontage of 110 feet and is 100 feet deep with a total lot size of 11,067 square feet. The zoning is M1-5B which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $25.4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $9,900 in ECB penalties and $10,550 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 SoHo, the bulk, or 46 percent of the 9.4 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 15 percent of the space. In sales, SoHo has 1.6 times the average sales volume among other neighborhoods with $553.1 million in sales volume in the last two years and is the 25th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 192,231 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block of 42 Greene Street, PincusCo has identified the owners of 13 of the 28 commercial properties representing 264,662 square feet of the 397,071 square feet. The largest owner is Zar Property NY, followed by Rreef and then David Brown.
There are no active new building construction projects on this tax block.

The majority, or 43 percent of the 348,357 square feet of built space are office buildings, with mixed-use buildings next occupying 42 percent of the space.

The borrower

The PincusCo database currently indicates that Zar Property Ny owned at least nine commercial properties in New York City with 401,730 square feet and a city-determined market value of $114.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 82 percent of the 401,730 square feet of built space are office properties, with retail properties next occupying 10 percent of the space. They are all located in Manhattan.

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