Candor Capital pays $12M to Turtle Bay Music School for two office condos in Murray Hill

Candor Capital through the entity Corinthian Office 3 LLC paid $12 million to the Turtle Bay Music School for office condo at 345 East 37th Street in Murray Hill, Manhattan and office condo at 345 East 37th Street in Murray Hill, Manhattan.
The deal closed on October 14, 2022 and was recorded on October 19, 2022. The two properties have 13,232 square feet of built space according to PincusCo analysis of city data. The sale price per built 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 Turtle Bay Music School was Jeffrey Schlosser. The signatory for Candor Capital was Jeffrey Meshel.

The school bought the two units in 2018 for $14 million

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Candor Capital purchased five properties in two transactions for a total of $11.4 million and has no record it sold any properties over the past 24 months.
The seller Turtle Bay Music School had not purchased any other properties and had not sold any properties over the same time period.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations in the last year.

The neighborhood

In Murray Hill, the majority, or 57 percent of the 11.6 million square feet of commercial built space are elevator buildings, with office buildings next occupying 21 percent of the space. In sales, Murray Hill has 3 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 14th highest in Manhattan. For development, Murray Hill has had very little major development activity relative to other neighborhoods.It had 172,263 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.

The block

On the tax block of 345 East 37th Street, PincusCo has identified the owners of nine of the 38 commercial properties representing 63,975 square feet of the 136,842 square feet. The largest owner is Scharfman Organization, followed by Patricia Langer East and then Candor Capital.
There are no active new building construction projects on this tax block.

The majority, or 87 percent of the 67,265 square feet of built space are walkup buildings, with mixed-use buildings next occupying 13 percent of the space.

The buyer

The PincusCo database currently indicates that Candor Capital owned at least eight commercial properties in New York City with 23,029 square feet and a city-determined market value of $6.2 million. (Market value is typically about 50% of actual value.) The portfolio has $28.8 million in debt, with top three lenders as Spruce Capital, Bank of Princeton, and Signature Bank respectively. Within the portfolio, the bulk, or 47 percent of the 23,029 square feet of built space are office properties, with specialty properties next occupying 22 percent of the space. The bulk, or 53 percent of the built space, is in Brooklyn, with Manhattan next at 47 percent of the space.

Direct link to Acris document. link