ATCO buys out Ruben Companies 50% stake in Grand Central office building valued at $97.8M

ATCO Properties & Management through the entity 630 Associates, LLC acquired a 50% stake stake from former partner Ruben Companies through the entity 630 Third Avenue Associates, LP in the office building (O4) at 630 Third Avenue in Grand Central, Manhattan. The entire property was valued at $97.8 million.
At the same time, ATCO modified an existing $70 million loan with Prudential Financial.
The sale closed on November 18, 2022 and was recorded on December 12, 2022. The property has 210,777 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $464 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 Ruben Companies was Richard Ruben. The signatory for ATCO Properties & Management was Kate Goodman.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer ATCO Properties & Management had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Ruben Companies had not purchased any other properties and had not sold any properties over the same time period. The 210,777-square-foot property generated revenue of $15.9 million or $75 per square foot, according to the most recent income and expense figures.

The property

The 630 3rd Avenue parcel has frontage of 123 feet and is 100 feet deep with a total lot size of 12,341 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 $62.4 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 one DOB violation 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 Grand Central, the majority, or 80 percent of the 43.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Grand Central has 2.5 times the average sales volume among other neighborhoods with $875.2 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, Grand Central has 1.7 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 1.8 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 two of the seven commercial properties representing 484,899 square feet of the 3,114,083 square feet. The two identified owners are Broad Street Development and Savanna.
There are no active new building construction projects on this tax block.

All properties are office.

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