AIDS Healthcare pays $8.5M to Apple Core Holdings for second hotel purchase on Harlem block

AIDS Healthcare Foundation paid $8.5 million to Apple Core Holdings through the entity Crosstown Hotel Inc. for hotel building (HR) at 515 West 145th Street in Harlem, Manhattan. This is the second purchase by the AIDS group in October. The other was for a hotel building on the same block with the address 511 West 145th Street, but they are not adjacent.
The 515 West 145th Street deal closed on October 25, 2022 and was recorded on November 2, 2022. The property has 12,800 square feet of built space and 1,164 square feet of additional air rights for a total buildable of 13,973 square feet according to PincusCo analysis of city data. The sale price per built square foot is $664 and the price per buildable square foot is $609 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 Apple Core Holdings was William Kohane.
The other hotel the AIDS Healthcare Foundation bought on the block at 511 West 145th Street, also cost $8.5 million.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer AIDS Healthcare Foundation purchased one property in one transaction for a total of $8.5 million and has no record it sold any properties over the past 24 months.
The seller Apple Core Holdings had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Baxter Lanius, head officer and William T, Kohane, shareholder. The business entity is Crosstown Hotel, Inc.

The property

The 515 West 145th Street parcel has frontage of 33 feet and is 99 feet deep with a total lot size of 3,327 square feet. The zoning is R7D which allows for up to 4.2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $3,095 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 Harlem, the bulk, or 44 percent of the 79.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, Harlem has 2.6 times the average sales volume among other neighborhoods with $887.8 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, Harlem has 3.2 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Manhattan. It had 3.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 25 commercial properties representing 105,915 square feet of the 345,410 square feet. The largest owner is Direct Property Management, followed by Joel Hammer and then Ravinder Annamaneni.
There are no active new building construction projects on this tax block.

The majority, or 59 percent of the 345,410 square feet of built space are walkup buildings, with elevator buildings next occupying 18 percent of the space.

The buyer

The PincusCo database currently indicates that AIDS Healthcare Foundation owned at least one commercial property in New York City with 12,880 square feet and a city-determined market value of $837,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single hotel property. It is located in Manhattan.

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