Morgan Stanley refinances Kibel Kips Bay Tower with $ 75 million loan – commercial commentator

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Investor and developer from New York Cybel company received $ 75 million in debt from Morgan Stanley refinance a residential multipurpose tower at 34th Street in Keeps Bay, Manhattan, according to city reports and analysis of transactions from Fitch Ratings

A 10-year interest-free commercial mortgage-backed securities (CMBS) loan was refinanced for just under $ 53 million in existing debt, financed outstanding tenant improvement reserve and advance free rent, and paid closing fees, and Kibel was also able to get about $ 20.3 million in fresh capital financed by Fitch.

According to Fitch specifications, Morgan Stanley set an assessed value of $ 231 million for the 36-story property, which corresponds to a guaranteed loan pegged to the deal value of about 32.5%.

The high-rise building built in 1974 is located at: 300 East 34th Street – between First and Second avenues – and just a block from the extensive NYU Langone Health medical center in 550 First Avenue, along the East River in Keeps Bay.

The residential section of the property includes 359 luxury studios, one and two bedroom apartments, as well as amenities such as on-site parking, fitness center, laundry facilities and a rooftop pool deck, according to the property’s website. … Kibel has retained the property since its development nearly five decades ago, and the company has spent about $ 6.6 million since 2016 on upgrades and refurbishment of common areas and amenities.

Apartments range in size from 600 square feet of studios to approximately 1,300 square feet of two bedroom apartments. The monthly rent for each floor plan cannot be immediately determined, but there is a studio on the Kibel website that costs just under $ 3,000 per month. The median gross rent at East 34th Street, 300 is $ 3,483 per apartment, nearly 20 percent lower than the neighborhood’s median rent of about $ 4,336 per apartment, according to Fitch citing data. Flight

The residential portion of the property accounts for approximately 87.7% of the base real estate rent, while the commercial area of ​​approximately 25,600 square feet on the ground floor of the asset covers approximately 12.3% of the base rent; the commercial space is fully leased to five tenants, one of whom Chipotle, as estimated by Fitch.

Over the past four years, the tower has been about 95.5% or more occupied, and as of March, apartments in the building were nearly 92% occupied. For the previous 12 months ended April 2021, the average rental collection for both residential and commercial space was over 98 percent and 96 percent, respectively.

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