A10 Capital takes back SoHo retail from Continental Equities with $23M transfer valuation

Former lender A10 Capital through the entity A10 Cap Reo-535 Broadway, LLC acquired from Continental Equities Group through the entity 535 Broadway Group LLC the four-unit mixed-use building (K4) at 535 Broadway in SoHo, Manhattan, with a transfer valuation of $23 million. This is the second property A10 took back from Continental in two months.
The transfer closed on December 6, 2023 and was recorded on December 8, 2023. The property has 11,875 square feet of built space and 624 square feet of additional air rights for a total buildable of 12,495 square feet according to a PincusCo analysis of city data. The transfer price per built square foot is $1,940 and the price per buildable square foot is $1,843 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 Continental Equities Group was Jenny Haim. The signatory for A10 Capital was Jamie Berenger. The contract date was December 6, 2023. In this transaction, lender A10 Capital took back a property where it provided two loans totaling $29 million.
A10 Capital filed a pre-foreclosure case December 2020, 850207/2020.

Last month, in a related case,  lender A10 Capital acquired five high-end unsold condominium units from Continental Equities Group at 46 Lispenard Street in Tribeca with a transfer value of $19.5 million, which was the amount of a loan A10 provided to Continental in May 2019.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer A10 Capital acquired five properties in one transaction for a total of $19.5 million and has no record it sold any properties over the past 24 months.
The seller Continental Equities Group had not purchased any other properties and sold or turned over seven properties in three transactions for a total of $71.8 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Jack Jangana, head officer and Jenny Haim, officer. The business entity is 535 Broadway Group Llc.

The property

The mixed-use building with 4 residential units in SoHo has 11,875 square feet of built space and 624 square feet of additional air rights for a total buildable of 12,495 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 square feet. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $7.7 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 $7,000 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 $1 million on this tax lot.

The neighborhood

In SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has 2.1 times the average sales volume among other neighborhoods with $714.5 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 278,647 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the eight commercial properties representing 514,673 square feet of the 599,722 square feet. The largest owner is Wharton Properties, followed by Scholastic and then Anette Marweld.
There are no active new building construction projects on this tax block.

The majority, or 78 percent of the 599,722 square feet of built space are office buildings, with mixed-use buildings next occupying 8 percent of the space.

The seller

The PincusCo database currently indicates that Continental Equities Group owned at least three commercial properties with three residential units in New York City with 54,881 square feet and a city-determined market value of $8.4 million. (Market value is typically about 50% of actual value.) The portfolio has $18.2 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 90 percent of the 54,881 square feet of built space are office properties, with mixed-use properties next occupying 10 percent of the space. They are all located in Manhattan.

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