Akris pays $40.6M to SL Green, partners for Madison Avenue retail

Fashion retailer Akris through the entity Lace Madison LLC acquired an interest from SL Green Realty and partners in care of Walter & Samuels, through the entity Boblar Holdings LLC valued at $40.6M for three retail condominium units and one residential unit at 772 Madison Avenue, with an alternate address of 21 East 66th Street in Lenox Hill, Manhattan.

The deal closed on December 18, 2023 and was recorded on January 4, 2024. The three retail properties have 9,402 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $4,103 per the PincusCo analysis.

The Real Deal reported Akris was the buyer, citing unidentified sources.  CBRE team led by Daniel Kaplan and Doug Middleton brokered the deal.

Akris has been an active buyer, with purchases in Soho and Madison Avenue.

The residential condo unit has 1,698 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,176 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.)
SL Green is a minority partner as a seller. According to its third quarter report, it owned less than a third. “We hold a 32.28% interest in three retail units and one residential unit at the property and a 16.14% interest in two residential units at the property. In October, together with our joint venture partners, we entered into an agreement to sell the equity interests in the condominium units at the property. The sale is anticipated to close in the fourth quarter of 2023, subject to customary closing conditions.”

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Akris purchased three properties in two transactions for a total of $31.5 million and has no record it sold any properties over the past 24 months.
The seller SL Green Realty purchased three properties in three transactions for a total of $2.4 billion and sold 32 properties in 10 transactions for a total of $642.3 million over the same time period.

The property

The retail condo in Lenox Hill has 9,402 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 4,500 square feet. The city-designated market value for the property in 2022 is $4.4 million. The most recent loan totaled $12 million and was provided by Apple Bank for Savings on March 24, 2023.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations 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 Lenox Hill, The bulk, or 35 percent of the 52 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $4.2 billion in sales volume in the last two years. For development, Lenox Hill is the 8th most active neighborhood among other neighborhoods. It had 4.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On the tax block of 21 East 66th Street, PincusCo has identified the owners of seven of the 19 commercial properties representing 121,627 square feet of the 238,927 square feet. The largest owner is Stanley Rintel, followed by Lotos Club and then HUBB NYC.
There are no active new building construction projects on this tax block.

The majority, or 25 percent of the 238,927 square feet of built space are specialty buildings, with elevator buildings next occupying 24 percent of the space.

The seller

The PincusCo database currently indicates that SL Green Realty owned at least 36 commercial properties with 881 residential units in New York City with 17,346,981 square feet and a city-determined market value of $7.5 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 93 percent of the 17,346,981 square feet of built space are office properties, with elevator properties next occupying 4 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Akris owned at least four commercial properties with 18 residential units in New York City with 42,890 square feet and a city-determined market value of $39.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 38 percent of the 42,890 square feet of built space are elevator properties, with mixed-use properties next occupying 22 percent of the space. They are all located in Manhattan.

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