Bridge Investment Group acquires SoHo retail from Quality Capital USA with $16.5M transfer value

UPDATED 12:45 p.m., November 21, 2023: Former lender Bridge Investment Group through the entity Bds II Ny 355 W Broadway LLC acquired from Quality Capital USA through the entity Bh Quality Soho LLC the retail building (O5) at 355 West Broadway in SoHo, Manhattan. The transfer had a value of $16.5 million. This was a deed in lieu of foreclosure.
The transfer closed on October 26, 2022 and was recorded on November 10, 2022. The property has 6,690 square feet of built space and 4,274 square feet of additional air rights for a total buildable of 10,960 square feet according to PincusCo analysis of city data. The sale price per built square foot is $2,460 and the price per buildable square foot is $1,501 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 September 10, 2014, for $9.9 million. The signatory for Quality Capital USA was Shimshon Klugman. The signatory for Bridge Investment Group was Jeehae Lee. Bridge Investment Group provided debt totaling $12,475,000 in 2017.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Bridge Investment Group purchased one property in two transactions for a total of $73.4 million and sold one property in one transaction for a total of $13 million over the past 24 months.
The seller Quality Capital USA had not purchased any other properties and sold one property in one transaction for a total of $4.8 million over the same time period. The 6,690-square-foot property generated revenue of $715,947 or $107 per square foot, according to the most recent income and expense figures.

The property

The 355 West Broadway parcel has frontage of 21 feet and is 100 feet deep with a total lot size of 2,192 square feet. The zoning is M1-5A which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $3.2 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 $125 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 $5 million on this tax lot.

The neighborhood

In SoHo, the bulk, or 46 percent of the 9.4 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 15 percent of the space. In sales, SoHo has 1.6 times the average sales volume among other neighborhoods with $567.1 million in sales volume in the last two years and is the 25th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 255,824 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 31 commercial properties representing 39,150 square feet of the 232,447 square feet. The largest owner is Churchill Real Estate Holdings, followed by Northwind Group and then Ascot Properties.
On the tax block, there were three new building construction projects totaling 39,108 square feet. The largest is a five-unit, 14,111-square-foot R-2 building developed by Jake Borden with plans filed September 19, 2013 and permitted February 11, 2015. The second largest is a zero-unit, 12,499-square-foot B building developed by Uri Omari with plans filed December 2, 2019 and it has not been permitted yet.

the majority, or 35 percent of the 154,496 square feet of built space are retail buildings, with office buildings next occupying 19 percent of the space.

Correction: A prior version of this post described the transaction as a sale when in fact it was a deed in lieu of foreclosure.

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