$301M internal transfer at Related’s 274-unit Tribeca Green

An unknown investment stake valued at $301 million in Related Companies’ 274-unit apartment building Tribeca Green at 325 North End Avenue in Battery Park City, Manhattan, sold, but the buyer and seller entities were not disclosed in the city transfers. The parties paid $9.95 million in city and state property transfer taxes. The property remains in care of Related Companies, and the percent ownership of Related was not known before or after the transfer. PincusCo is reporting on the transfer since significant transfer taxes were paid.
The buying entity in care of Related Companies through the entity Two Ten Warren Owners Corp paid $301 million to the Related Companies’ entity Bpc Green, L.L.C. for a stake in the 274-unit residential elevator building (D8) at 325 North End Avenue in Battery Park City, Manhattan.
The deal closed on June 7, 2023 and was recorded on July 10, 2023. The property has 356,483 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $844 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 seller bought the property on December 15, 2010, for $11.5 million. Related is buyer and seller but tax was paid so there was a real sale.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Related Companies purchased seven properties in two transactions for a total of $138 million and sold 16 properties in 14 transactions for a total of $1 billion over the past 24 months.
The seller Related Companies purchased nine properties in three transactions for a total of $138 million and sold 19 properties in 17 transactions for a total of $1.2 billion over the same time period. The former owners according to the Department of Housing Preservation and Development includes Bill Brake, head officer and Mary Kearney, site manager. The business entities are Related Management and Tribeca Green Llc.

The property

The residential elevator building with 274 residential units in Battery Park City has 356,483 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 196 feet and is 135 feet deep with a total lot size of 18,269 square feet. The lot is irregular. The city-designated market value for the property in 2022 is $117.1 million.

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 one DOB violation, $17,185 in ECB penalties, and $26,355 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 19, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 11 of the 22 commercial properties representing 13,484,739 square feet of the 15,658,954 square feet. The largest owner is Rockrose Development, followed by Lefrak and then Goldman Sachs.
On the tax block, there were two new building construction projects totaling 19,798 square feet. The largest is a 18,798 square-foot assembly (A-2) building submitted by Gwen Dawson with plans filed February 2, 2022 and it has not been permitted yet. The second largest is a 1,000 square-foot utility and miscellaneous (U) building submitted by Gwen Dawson with plans filed February 3, 2016 and permitted November 15, 2016.

The majority, or 69 percent of the 15.7 million square feet of built space are office buildings, with elevator buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Related Companies owned at least 178 commercial properties with 9,571 residential units in New York City with 21,405,438 square feet and a city-determined market value of $6 billion. (Market value is typically about 50% of actual value.) The portfolio has $4.7 billion in debt, with top three lenders as Wells Fargo, Carlyle Group, and Deutsche Bank respectively. Within the portfolio, the bulk, or 45 percent of the 21,405,438 square feet of built space are elevator properties, with office properties next occupying 30 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Bronx next at 23 percent of the space.

The buyer

The PincusCo database currently indicates that Related Companies owned at least 178 commercial properties with 9,571 residential units in New York City with 21,405,438 square feet and a city-determined market value of $6 billion. (Market value is typically about 50% of actual value.) The portfolio has $4.7 billion in debt, with top three lenders as Wells Fargo, Carlyle Group, and Deutsche Bank respectively. Within the portfolio, the bulk, or 45 percent of the 21,405,438 square feet of built space are elevator properties, with office properties next occupying 30 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Bronx next at 23 percent of the space.

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