Blackstone Group pays $42.8M to Morgan Stanley for retail, office in SoHo

Blackstone Group through the entity Soho Retail Portfolio 113 Spring Street LLC paid $42.8 million to Morgan Stanley through the entity Ppf Rtl 113 Spring Street, LLC for the retail and office building (O5) at 113 Spring Street in SoHo, Manhattan. The expected use is cash flowing.
The deal closed on January 15, 2026 and was recorded on January 23, 2026. The property has 16,298 square feet of built space and 2,437 square feet of additional air rights for a total buildable of 18,750 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $2,623 and the price per buildable square foot is $2,280 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 seller bought the property on August 5, 2015, for $68 million. The signatory for Morgan Stanley was Matt Micari . The signatory for Blackstone Group was Adam Leslie . The contract date was January 7, 2026. The Commercial Observer reported on the purchase previously.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has records that the buyer Blackstone Group purchased 17 properties in 11 transactions for a total of $530.2 million and sold 41 properties in seven transactions for a total of $1 billion over the past 24 months.
The seller Morgan Stanley purchased one property in one transaction for a total of $56 million and sold three properties in three transactions for a total of $487 million over the same time period. The 16,298-square-foot property generated revenue of $1.8 million or $108 per square foot, according to the most recent income and expense figures.

The property

The office building in SoHo has 16,298 square feet of built space and 2,437 square feet of additional air rights for a total buildable of 18,750 square feet according to a PincusCo analysis of city data. The parcel has frontage of 37 feet and is 100 feet deep with a total lot size of 3,750 square feet. The zoning is M1-5/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $10.7 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 $740 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 $1 million on this tax lot.

The neighborhood

In SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has the 7th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 992,539 square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of four of the 13 commercial properties representing 232,115 square feet of the 316,967 square feet. The largest owner is Sl Green Realty, followed by Tarquin Callen and then Arkray Inc..
There are no active new building construction projects on this tax block.

The majority, or 66 percent of the 316,967 square feet of built space are office buildings, with mixed-use buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that Morgan Stanley owned at least six commercial properties in New York City with 431,548 square feet and a city-determined market value of $65.3 million. (Market value is typically about 50% of actual value.) The portfolio has $97 million in debt, with top three lenders as Blackstone Group, Corebridge Financial, and Morgan Stanley respectively. Within the portfolio, the bulk, or 85 percent of the 431,548 square feet of built space are industrial properties, with specialty properties next occupying 15 percent of the space. They are all located in Queens.

The buyer

The PincusCo database currently indicates that Blackstone Group owned at least 43 commercial properties with 14,164 residential units in New York City with 18,673,544 square feet and a city-determined market value of $3.6 billion. (Market value is typically about 50% of actual value.) The portfolio has $5.6 billion in debt, with top three lenders as Wells Fargo, Morgan Stanley, and NYC Housing Development Corporation respectively. Within the portfolio, the bulk, or 81 percent of the 18,673,544 square feet of built space are elevator properties, with office properties next occupying 13 percent of the space. The bulk, or 86 percent of the built space, is in Manhattan, with Queens next at 10 percent of the space.

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