Atlas, Zeckendorf, Baupost pay $340M to Westbrook for dev site in Hudson Square

Atlas Capital Group, Zeckendorf Development, and Baupost Group through the entity Aci VI Clarkson LLC paid $340 million to Westbrook Partners through the entity Sjc Owner 2015, LLC for property with the address of 570 Washington Street in Hudson Square, Manhattan. The parcel is a vacant lot just north of the St. John’s Terminal Building at 550 Washington Street. Despite being a vacant lot, the parcel is a condominium tax lot, bounded by West Houston, Washington, Clarkson and West streets.
The deal closed on July 8, 2022 and was recorded on July 15, 2022. The property has zero square feet of built space according to PincusCo analysis of city data.
The signatory for Westbrook Partners was Diego Rico. The signatory for Atlas Capital Group, Zeckendorf Development, and Baupost Group was Jeffrey A. Goldberger, Andrew B. Cohen, William L. Zeckendorf, and Arthur W. Zeckendorf. The New York Post first reported that the sale of the property was under contract. According to the report, the buyer LLC is a joint venture between Atlas Capital Group, Zeckendorf Development and the Baupost Group. Blackstone provided $257.4 million in senior secured financing for the project as part of a$332 million total financing.  Jeffrey A. Goldberger is a partner and co-founder of Atlas Capital Group.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Atlas Capital Group purchased eight properties in eight transactions for a total of $648 million and sold two properties in two transactions for a total of $51.5 million over the past 24 months.
The seller Westbrook Partners had not purchased any other properties and sold three properties in three transactions for a total of $458.1 million over the same time period.

The property

PincusCo cannot determine the lot area of the 532 Washington Street parcel at this time. The city-designated market value for the property in 2022 is $46.9 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 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 $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of one of the three commercial properties representing zero square feet of the 811,224 square feet. The identified owner is Google. There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 479,500 square feet of built space are industrial buildings, with mixed-use buildings next occupying 0 percent of the space.

The buyer

The PincusCo database currently indicates that Atlas Capital Group owned at least eight commercial properties in New York City with 1,168,425 square feet and a city-determined market value of $209.1 million. (Market value is typically about 50% of actual value.) The portfolio has $606.4 million in debt, with top three lenders as Square Mile Capital Management, MF1 Capital, and Arbor Realty Trust respectively. Within the portfolio, the bulk, or 66 percent of the 1,168,425 square feet of built space are elevator properties, with rental condo properties next occupying 28 percent of the space. The bulk, or 66 percent of the built space, is in Brooklyn, with Manhattan next at 34 percent of the space.
The PincusCo database currently indicates that Zeckendorf Development owned at least two commercial properties in New York City with 36,016 square feet and a city-determined market value of $34 million. (Market value is typically about 50% of actual value.) The portfolio has $136.6 million in debt, borrowed from JPMorgan Chase. Within the portfolio, all identified are specialty properties. They are all located in Manhattan.
The PincusCo database currently indicates that Baupost Group owned at least one commercial property in New York City with 515,174 square feet and a city-determined market value of $196 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

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