Acadia pays $55M for retail co-op unit in SoHo

Acadia Realty Trust through the entity 106 Spring Retail Owner LLC purchased from Paceline Equity Partners through the entity Soho Operating Company, LLC a retail cooperative unit valued at $55 million in the 10-unit residential elevator building (D4) at 106 Spring Street in SoHo, Manhattan.
The deal closed on January 9, 2025 and was recorded on January 17, 2025.
The seller bought the property on March 2, 2021, for $23.9 million. The signatory for Acadia Realty Trust was Jason Blacksberg.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Acadia Realty Trust [see activity] purchased 15 properties in nine transactions for a total of $191.2 million and sold two properties in one transaction for a total of $48.2 million over the past 24 months.
The seller Paceline Equity Partners purchased one property in one transaction for a total of $34.5 million and had not sold any properties over the same time period.

The property

The residential elevator building with 10 residential units in SoHo has a total of 32,088 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 70 feet and is 76 feet deep with a total lot size of 5,381 square feet. The lot is irregular. The zoning is M1-5/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $8 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 two DOB violations, $1,250 in ECB penalties, five housing violations, and $1,300 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 block

On this tax block, PincusCo has identified the owners of six of the 15 commercial properties representing 106,974 square feet of the 201,726 square feet. The largest owner is Shopcore Properties, followed by Albert Malekan and then George Makkos.
There are no active new building construction projects on this tax block.

The majority, or 31 percent of the 201,726 square feet of built space are retail buildings, with office buildings next occupying 25 percent of the space.

The seller

The PincusCo database currently indicates that Paceline Equity Partners owned at least two commercial properties with 10 residential units in New York City with 95,736 square feet and a city-determined market value of $24.3 million. (Market value is typically about 50% of actual value.) The portfolio has $24.4 million in debt, borrowed from Ponce Bank. Within the portfolio, the bulk, or 66 percent of the 95,736 square feet of built space are hotel properties, with D4 properties next occupying 34 percent of the space. The bulk, or 66 percent of the built space, is in Queens, with Manhattan next at 34 percent of the space.

The buyer

The PincusCo database currently indicates that Acadia Realty Trust owned at least six commercial properties with 150 residential units in New York City with 265,483 square feet and a city-determined market value of $84.8 million. (Market value is typically about 50% of actual value.) The portfolio has $284.4 million in debt, with top three lenders as Bank of America, Bridge Investment Group, and TD Bank respectively. Within the portfolio, the bulk, or 43 percent of the 265,483 square feet of built space are retail properties, with D4 properties next occupying 35 percent of the space. The bulk, or 54 percent of the built space, is in Manhattan, with Queens next at 38 percent of the space.

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