California entity pays $17.5M for mixed-use in SoHo, financed with purchase-money mortgage

The California-based entity Dirty Building Holdings LP paid $17.5 million to the estate of Aaron Rose through the entity Scan Enterprises Corp. for the mixed-use building at 392-394 West Broadway in SoHo, Manhattan. The acquisition was financed with an $8.6 million purchase money mortgage. The buyer entity is led by an accountant at the accounting firm Prager Metis, Joseph Rust.
The deal closed on January 27, 2022 and was recorded on February 9, 2022.
The property has 16,900 square feet of built space and 2,433 square feet of additional air rights for a total buildable of 19,315 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,035 and the price per buildable square foot is $906 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 Estate of Aaron Rose was Christine Alicino and Mark L. Stern. The signatory for Dirty Building Holdings LP was Joseph Rust.
Prior to this transaction, the buyer Dirty Building Holdings LP had not purchased any other properties and had not sold any properties over the past 24 months.

The 16,900-square-foot property generated revenue of $1.6 million or $94 per square foot, according to the most recent income and expense figures.

In SoHo, the bulk, or 33 percent of the 13 million square feet of built space are office buildings, with residential elevator buildings next occupying 26 percent of the space. In sales, SoHo has 2.3 times the average sales volume among other neighborhoods with $637.7 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 137,726 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.
On the tax block, the majority, or 21 percent of the 277,531 square feet of built space are mixed-use buildings, with residential elevator buildings next occupying 21 percent of the space.

Within a 400-foot radius of 392-394 West Broadway, PincusCo identified 21 commercial real estate items of interests occurred over the past 24 months.
Of those 21 items, one was in new building development. It was a new building permit application filed on July 22, 2021 for a 25,552-square-foot R-2 building with nine residential units at 182 Spring Street.
Of those 21 items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on May 21, 2021 for the $1.1 million renovation of 10,521-square-foot R-2 building with five residential units at 147 Spring Street.
Of those 21 items, six were sales above $5 million totaling $261.3 million. The most recent of the six was Macquarie Group which bought the 61,040-square-foot, 12-unit office building (O5) on 375 West Broadway for $130 million from JP Morgan Global Alternatives on February 7, 2022.
Of those 21 items, 13 were loans above $5 million totaling $299.5 million. The most recent of the 13 was Macquarie Group which borrowed $65.9 million from Deutsche Pfandbriefbank secured by the 61,040-square-foot, 12-unit office building (O5) on 375 West Broadway on February 7, 2022.

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