Brodsky Org. pays $12.4M to Quinlan Dev. for retail in SoHo, Chelsea

The Brodsky Organization paid $12.4 million to Quinlan Development Group for retail condominium units at 25 West Houston Street in SoHo and 456 West 19th Street in Chelsea in two separate transactions.

In the larger sale, the Brodsky Organization through the entity The Beaumont Company LLC paid $8.8 million to Quinlan Development Group through the entity 25 Houston LLC for two retail condo units at 25 West Houston Street in SoHo, in Manhattan.

The deal closed on March 28, 2024 and was recorded on March 29, 2024. The two properties have 8,059 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,091 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 Quinlan Development Group was Timothy Quinlan. The signatory for Brodsky Organization was J. Dean Amro. The contract date was February 28, 2024.

The developer of the condo building at 25 West Houston Street, Metropolitan Housing Partners, co-owned by Christopher Martorella, lost the retail in a foreclosure.

Quinlan Development Group bought the debt, with an original principal of $8.5 million, in 2011, and took title in 2011, financed with a $6.5 million loan from Sovereign Bank. Quinlan refinanced that loan in January 2017 with $8.3 million from Capital One.

In the second transaction, Brodsky Organization through the entity The Beaumont Company LLC paid $3.6 million to Quinlan Development Group through the entity Highline 19 LLC for the retail condo at 456 West 19th Street in Chelsea, Manhattan and retail condo at 456 West 19th Street in Chelsea, Manhattan. The deal closed on March 28, 2024 and was recorded on March 29, 2024. The two properties have 5,989 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $605 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 Quinlan Development Group was Timothy Quinlan. The signatory for Brodsky Organization was J. Dean Amro. The contract date was February 28, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Brodsky Organization purchased three properties in two transactions for a total of $80.3 million and sold two properties in two transactions for a total of $116.4 million over the past 24 months.
The seller Quinlan Development Group purchased one properties in one transaction for a total of $24 million and had not sold any properties over the same time period.

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 1.9 times the average sales volume among other neighborhoods with $527.9 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 186,504 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block of 25 West Houston Street, PincusCo has identified the owners of seven of the 10 commercial properties representing 180,564 square feet of the 197,089 square feet. The largest owner is Weybourne Holdings, followed by Jan Koum and then Glenwood Management.
On the tax block, there was one new building construction project filed totaling 7,032 square feet. It is a 7,032 square-foot mercantile (M) building submitted by Imelda Malijan-Sjam with plans filed October 2, 2013 and permitted July 31, 2014.

The majority, or 54 percent of the 197,089 square feet of built space are retail buildings, with hotel buildings next occupying 34 percent of the space.

The seller

The PincusCo database currently indicates that Quinlan Development Group owned at least five commercial properties with 120 residential units in New York City with 388,939 square feet and a city-determined market value of $88.2 million. (Market value is typically about 50% of actual value.) The portfolio has $271.7 million in debt, with top three lenders as PCCP, First-Citizens Bank & Trust Company, and CIT Bank respectively. Within the portfolio, the bulk, or 60 percent of the 388,939 square feet of built space are office properties, with elevator properties next occupying 34 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Brodsky Organization owned at least 43 commercial properties with 5,920 residential units in New York City with 5,824,465 square feet and a city-determined market value of $1.2 billion. (Market value is typically about 50% of actual value.) The portfolio has $746.1 million in debt, with top three lenders as M&T Bank, AXA Equitable, and Bank of New York Mellon respectively. Within the portfolio, the bulk, or 93 percent of the 5,824,465 square feet of built space are elevator properties, with office properties next occupying 3 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Brooklyn next at 20 percent of the space.

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