Anonymous buyer pays $38M to Riese Organization for Fifth Avenue retail

The New York entity Major Capital, LLC, with unknown ownership, paid $38 million to the Riese Organization through the entity 560 Fifth Owner, LLC for the retail building (O5) at 560 Fifth Avenue in Midtown West, Manhattan.
The deal closed on December 14, 2023 and was recorded on December 18, 2023. The property has 13,580 square feet of built space and 11,811 square feet of additional air rights for a total buildable of 25,400 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $2,798 and the price per buildable square foot is $1,496 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 Riese Organization was Ann Martinez. The contract date was November 20, 2023. The Riese Organization put the property on the market earlier this year.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Major Capital had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Riese Organization had not purchased any other properties and sold two properties in two transactions for a total of $29.5 million over the same time period.

The property

The retail building in Midtown West has 13,580 square feet of built space and 11,811 square feet of additional air rights for a total buildable of 25,400 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 2,540 square feet. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $20.2 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 $3,050 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on January 10, 2020. 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 Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 19.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 25 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 27 commercial properties representing 521,840 square feet of the 1,309,332 square feet. The largest owner is Magna Hospitality Group, followed by Joseph Stavrach and then Gottesman Family.
There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 1.3 million square feet of built space are office buildings, with hotel buildings next occupying 13 percent of the space.

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