Alf Naman Real Estate pays $64.2M for industrial in West Village

UPDATED with correction: Alf Naman Real Estate through the entity 125 Owners LLC paid $64.2 million to a cooperative building through its WVH Housing Corporation for industrial building at 738 Greenwich Street in West Village, Manhattan.
Naman signed an acquisition loan with lender First Citizens Bank valued at $39.6 million.
The deal closed on May 13, 2022 and was recorded on May 23, 2022. The property has 39,628 square feet of built space and 400 square feet of additional air rights for a total buildable of 40,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,620 and the price per buildable square foot is $1,605 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 the co-op was Michael W. Stout. The signatory for Alf Naman Real Estate was Alf Naman.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Alf Naman Real Estate had purchased any other properties and has no record it sold any properties over the past 24 months.

The property

The 738 Greenwich Street parcel has frontage of 76 feet and is 92 feet deep with a total lot size of 10,000 square feet. The lot is irregular. The zoning is C1-6A which allows for up to 2 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The property is in the Greenwich Village Historic District. The city-designated market value for the property in 2022 is $6.7 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 $1,000 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 $5 million on this tax lot.

The neighborhood

In West Village, the bulk, or 35 percent of the 15.7 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 18 percent of the space. In sales, West Village has 2.5 times the average sales volume among other neighborhoods with $690.5 million in sales volume in the last two years and is the 16th highest in Manhattan. For development, West Village has had very little major development activity relative to other neighborhoods.It had 152,386 square feet of commercial and multi-family construction under development in the last two years, which represents 0.97 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 21 commercial properties representing 40,862 square feet of the 212,251 square feet. The largest owner is 332 W 11 Holding LLC, followed by Matthew Abramcyk and then S.W. Management. There are two active new building construction projects totaling 56,565 square feet. The largest is a six-unit, 28,691-square-foot R-2 building developed by Kevin Young with plans filed September 30, 2016 and it has not been permitted yet.The second largest is a one-unit, 27,874-square-foot R-2 building developed by Kevin Young with plans filed August 26, 2016 and permitted October 30, 2019.

The majority, or 29 percent of the 340,671 square feet of built space are residential walkup buildings, with industrial buildings next occupying 21 percent of the space.

The seller

Surrounding

Within a 400-foot radius of 738 Greenwich Street, PincusCo identified 15 commercial real estate items of interests occurred over the past 24 months.
Of those 15 items, two were in new building development. There were one new building permit application and one new building permit. The most recent of these two items was a permit on July 29, 2021 for a 34,564-square-foot R-2 building with 26 residential units at 540 Hudson St.
Of those 15 items, two were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $3.7 million and one permit with a total initial cost of $485,000. The most recent of these two items was the filing on April 8, 2022 for a 48,925-square-foot R-2 building with three residential units at 332 West 11th Street.
Of those 15 items, four were sales above $5 million totaling $75.8 million. The most recent of the four was 314 W. 11th St. LLC which bought the 4,400-square-foot, two-unit mixed-use building (K4) on 749 Greenwich Street for $7.5 million from Desiree Perez on March 9, 2022.
Of those 15 items, seven were loans above $5 million totaling $92.3 million. The most recent of the seven was Icon Realty Management which borrowed $20.5 million from BCB Community Bank secured by the 20,273-square-foot, 34-unit rental (C7) on 535 Hudson Street on May 18, 2022.

Correction: A prior version of this post reported incorrectly that Benedict Realty Group sold the building. In fact, it was not involved in this transaction.

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