Cayre Equities pays $16.1M for loft building in Garment District

Cayre Equities through the entity Cs Midtown 35 LLC paid $16.1 million to the Tekiner family through the entity 254-258 W 35th St LLC for the garment manufacturing loft building (F5) at 254-258 West 35th Street in Garment District, Manhattan. The expected use is cash flowing.
The deal closed on November 20, 2024 and was recorded on November 29, 2024. The property has 106,642 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $151 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 Bremen House and Gonca Tekiner Chelsea was Gonca Chelsea. The signatory for Cayre Equities was Kenneth Cayre. The contract date was September 13, 2024. The Tekiner family has been involved in litigation among family members, 154224/2023. Sami Tekiner bought the property in July 1982 for $481,250.

The sale was brokered by Eric Anton and John Stewart of Marcus & Millichap, which listed the property for sale.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Cayre Equities had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Bremen House had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Garment District has 106,642 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 98 feet deep with a total lot size of 7,406 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $14.2 million.

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 25 DOB violations, $625 in ECB penalties, and $3,175 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 neighborhood

In Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has 3.5 times the average sales volume among other neighborhoods with $888 million in sales volume in the last two years and is the 10th highest in Manhattan. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 7.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 17 of the 27 commercial properties representing 948,897 square feet of the 2,262,329 square feet. The largest owner is Jenel Management, followed by Metlife and then General Leasing & Management.
On the tax block, there were three new building construction projects totaling 196,772 square feet. The largest is a 300-unit, 157,517 square-foot hotel/dormitory/shelter (R-1) building submitted by Chetrit Group and filed by Meyer Chetrit with plans filed April 5, 2016 and permitted August 21, 2017. The second largest is a 27,048 square-foot business (B) building submitted by Churchill Real Estate Holdings and filed by Jake Borden with plans filed April 26, 2016 and permitted December 10, 2018.

The majority, or 75 percent of the 2.3 million square feet of built space are office buildings, with hotel buildings next occupying 16 percent of the space.

The buyer

The PincusCo database currently indicates that Cayre Equities owned at least 11 commercial properties in New York City with 642,431 square feet and a city-determined market value of $88.1 million. (Market value is typically about 50% of actual value.) The portfolio has $189.4 million in debt, with top three lenders as Bank Hapoalim, Santander Bank, and TD Bank respectively. Within the portfolio, the bulk, or 85 percent of the 642,431 square feet of built space are industrial properties, with specialty properties next occupying 8 percent of the space. The bulk, or 41 percent of the built space, is in Brooklyn, with Manhattan next at 39 percent of the space.

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