Capstone Equities recaps Penn Plaza hotel at $32M, borrows $30M

Capstone Equities transferred ownership at a reduced valuation of a hotel it owns at 6 West 32nd Street in Penn Plaza, Manhattan from one entity it controls, 6 West 32nd Street LLC, to another, New 6 West 32nd Street LLC. At the same time, Capstone refinanced the debt from a principal of $41 million given in 2019, to $30 million.
The deal closed on March 10, 2025 and was recorded on March 26, 2025. The property has 80,185 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $398 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.)
Capstone bought the property on August 30, 2017, for $51 million, then refinanced with Aareal Capital with $41 million in 2019. The new lender is Ellington Management Group, which provided $30 million. Capstone paid full transfer taxes as if this was a purchase from a different seller.

The signatory for Capstone Equities was Justin Adelipour .

Capstone did not respond to requests for comment.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Capstone Equities purchased four properties in four transactions for a total of $215 million and has no record it sold any properties over the past 24 months.
The seller Capstone Equities purchased four properties in four transactions for a total of $215 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Raluca Avacaritei, head officer and Justin Adelipour, officer. The business entity is 6 West 32nd Stree Llc. The 80,185-square-foot property generated revenue of $11.1 million or $139 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Penn Plaza has 80,185 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 98 feet deep with a total lot size of 4,938 square feet. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $20.7 million. The most recent loan totaled $41 million and was provided by Aareal Capital on July 29, 2019.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received six DOB violations, $27,562 in ECB penalties, and $31,117 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 25, 2014. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Penn Plaza, The majority, or 76 percent of the 20.4 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Penn Plaza has 1.2 times the average sales volume among other neighborhoods with $315.6 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, Penn Plaza is the 10th most active neighborhood among other neighborhoods. It had 4 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 15 of the 28 commercial properties representing 1,519,759 square feet of the 1,746,232 square feet. The largest owner is Global Holdings Group, followed by Rosen Equities and then Capstone Equities.
On the tax block, there was one new building construction project filed totaling 59,149 square feet. It is a 27-unit, 59,149 square-foot residential (R-2) building submitted by Cottonwood Management and filed by Alex Shing with plans filed June 28, 2017 and it has not been permitted yet.

The majority, or 79 percent of the 1.7 million square feet of built space are office buildings, with retail buildings next occupying 8 percent of the space.

The seller

The PincusCo database currently indicates that Capstone Equities owned at least six commercial properties in New York City with 792,058 square feet and a city-determined market value of $157.8 million. (Market value is typically about 50% of actual value.) The portfolio has $90.5 million in debt, borrowed from Argentic Investment Management and Aareal Capital. Within the portfolio, the bulk, or 52 percent of the 792,058 square feet of built space are hotel properties, with office properties next occupying 48 percent of the space. The bulk, or 52 percent of the built space, is in Manhattan, with Brooklyn next at 48 percent of the space.

The buyer

The PincusCo database currently indicates that Capstone Equities owned at least six commercial properties in New York City with 792,058 square feet and a city-determined market value of $157.8 million. (Market value is typically about 50% of actual value.) The portfolio has $90.5 million in debt, borrowed from Argentic Investment Management and Aareal Capital. Within the portfolio, the bulk, or 52 percent of the 792,058 square feet of built space are hotel properties, with office properties next occupying 48 percent of the space. The bulk, or 52 percent of the built space, is in Manhattan, with Brooklyn next at 48 percent of the space.

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