Bando Construction pays $99.2M to Sherwood Equities for retail condo in Times Square

South Korea-based Bando Construction through the entity Bando Geny 2 LLC paid $99.2 million to Sherwood Equities through the entity Sherwood 48 Associates for the retail condo at 2 Times Square in Times Square, Manhattan.
The deal closed on July 15, 2024 and was recorded on July 18, 2024. The property has 31,365 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $3,164 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 Sherwood Equities was Jeffrey Katz. The signatory for Bando Construction was John Choi. The contract date was May 31, 2024. The Commercial Observer reported on the purchase earlier this month.

Bando Construction financed the purchase with a $60 million loan from Hana Bank.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Bando Construction purchased one other property for 36 million and has no record it sold any properties over the past 24 months.
The seller Sherwood Equities had not purchased any other properties and sold two properties in two transactions for a total of $348.8 million over the same time period.

The property

The retail condo in Times Square has 31,365 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 31,365 square feet. The city-designated market value for the property in 2022 is $38.1 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 not received any significant violations in the last year.

The neighborhood

In Times Square, The majority, or 58 percent of the 10.1 million square feet of commercial built space are office buildings, with hotel buildings next occupying 30 percent of the space. In sales, Times Square has the 10th highest sale turnover among other neighborhoods in the city with $1 billion in sales volume in the last two years. For development, Times Square has had very little major development activity relative to other neighborhoods.It had 837,302 square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 604,783 square feet of the 720,708 square feet. The largest owner is Slate Property Group, followed by Prasit Realty Corp. and then Mehran Kohansieh.
There are no active new building construction projects on this tax block.

The majority, or 64 percent of the 720,708 square feet of built space are elevator buildings, with hotel buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Sherwood Equities owned at least three commercial properties in New York City with 0.0 square feet and a city-determined market value of $3.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are industrial properties.

The buyer

The PincusCo database currently indicates that Bando Construction owned at least one commercial property with 79 residential units in New York City with 112,000 square feet and a city-determined market value of $23.4 million. (Market value is typically about 50% of actual value.) The portfolio has $20 million in debt, borrowed from Keb Hana Bank. The portfolio consists of at least a single elevator property. It is located in Manhattan.

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