Canvas pays $104.5M to PGIM for two rentals with 210 units in Gramercy

Canvas Property Group through the entity Gramercy E 22nd Owner LLC paid $104.5 million to PGIM Real Estate through the entity 210-220 E. 22nd Street Ssga Owner, LLC for the 122-unit residential elevator building (D3) at 220 East 22nd Street and the 88-unit residential elevator building (D3) at 210 East 22nd Street in Gramercy, Manhattan. The expected use is cash flowing.
The deal closed on October 16, 2024 and was recorded on October 21, 2024. The two properties have 126,482 square feet of built space and 16,703 square feet of additional air rights for a total buildable of 143,191 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $826 and the price per buildable square foot is $729 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 PGIM Real Estate was Lynn deCastro. The signatory for Canvas Property Group was Robert Morgenstern. The contract date was August 22, 2024. PGIM bought the property for 73,800,000 in 9/24/2015.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Canvas Property Group had purchased any other properties and sold five properties in two transactions for a total of $37.5 million over the past 24 months.
The seller PGIM Real Estate had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Ruth Blankenheim, head officer and Dawn Curto, agent. The business entities are Rose Property Mgmt Grp Llc and 210-220 E. 22nd Street Ssga Owner,Llc.

The property

The residential elevator buildings with 210 residential units in Gramercy have 126,482 square feet of built space and 16,703 square feet of additional air rights for a total buildable of 143,191 square feet according to a PincusCo analysis of city data. One parcel has frontage of 147 feet and is 98 feet deep with a total lot size of 14,558 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $35.2 million. The most recent loan prior to the sale totaled $74 million and was provided by Prudential Financial on June 3, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation, $15,425 in ECB penalties, five housing violations, and $16,075 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 block

On the tax block of 220 East 22nd Street, PincusCo has identified the owners of nine of the 14 commercial properties representing 276,682 square feet of the 313,385 square feet. The largest owner is PGIM Real Estate, followed by S.W. Management and then Peak Capital Advisors.
There are no active new building construction projects on this tax block.

The majority, or 71 percent of the 313,385 square feet of built space are elevator buildings, with walkup buildings next occupying 25 percent of the space.

The seller

The PincusCo database currently indicates that PGIM Real Estate owned at least three commercial properties with 210 residential units in New York City with 130,232 square feet and a city-determined market value of $55.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 97 percent of the 130,232 square feet of built space are elevator properties, with retail properties next occupying 3 percent of the space. They are all located in Manhattan.

Direct link to Acris document. link