Chess Builders pays $30M to Hakimian Org. for 135-unit dev site in Midtown West

Chess Builders through the entity West 49 Realty LLC paid $30 million to Hakimian Organization through the entity 250 West 49 Associates, LLC for the 135-unit development site (V1) at 244 West 49th Street in Midtown West, Manhattan. The expected use is ground up development.
On the lot, there is one active new building construction project, M00630979, for a 255-foot-tall, 96,334-square-foot, 135-unit residential (R-2) building. The project was submitted by Rex Hakimian with plans filed January 12, 2022 and permitted May 31, 2022.
The deal closed on January 13, 2025 and was recorded on January 17, 2025. The project has 96,334 square feet of planned zoning space according to a PincusCo analysis of city data. The sale price per planned square foot is $311 per the PincusCo analysis.
The signatory for Hakimian Organization was Behrouz Ben Hakimian. The signatory for Chess Builders was Cheskel Schwimmer. The contract date was June 24, 2024.

The sale includes 16,000 square feet of transfer development rights (TDRs) that the Hakimian Organization acquired in February 2016 from the Helen Hayes/Little Theater for $7.04 million, or $440 per square foot, and the project is said to be vested under the expired 421a incentive program, according to an analysis by appraiser Daniel Sciannameo, president of Albert Valuation Group New York.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Chess Builders had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Hakimian Organization had not purchased any other properties and had not sold any properties over the same time period.

The property

The development building in Midtown West has 57,606 square feet of built space and 80,340 square feet of additional air rights for a total buildable of 80,340 square feet according to a PincusCo analysis of city data. The parcel has frontage of 80 feet and is 100 feet deep with a total lot size of 8,034 square feet. The zoning is C6-5 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 $6.6 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 not received any significant violations in the last year.

The neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 3rd highest sale turnover among other neighborhoods in the city with $2.5 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 30.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 40 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 11 commercial properties representing 1,459,816 square feet of the 1,578,897 square feet. The largest owner is Argent Ventures, followed by Stonehenge NYC and then Dream Hotel Group.
On the tax block, there was one new building construction project filed totaling zero square feet. It is a 136-unit residential (R-2) building submitted by Rex Hakimian with plans filed January 12, 2022 and permitted May 31, 2022.

The majority, or 61 percent of the 1.6 million square feet of built space are hotel buildings, with elevator buildings next occupying 30 percent of the space.

The seller

The PincusCo database currently indicates that Hakimian Organization owned at least 13 commercial properties with 957 residential units in New York City with 1,089,886 square feet and a city-determined market value of $394.4 million. (Market value is typically about 50% of actual value.) The portfolio has $517.1 million in debt, with top three lenders as Apollo Global Management, Apple Bank for Savings, and Cain International respectively. Within the portfolio, the bulk, or 49 percent of the 1,089,886 square feet of built space are elevator properties, with office properties next occupying 49 percent of the space. The bulk, or 88 percent of the built space, is in Manhattan, with Queens next at 12 percent of the space.

The buyer

The PincusCo database currently indicates that Chess Builders owned at least three commercial properties with 218 residential units in New York City with 62,704 square feet and a city-determined market value of $7.4 million. (Market value is typically about 50% of actual value.) The portfolio has $184.4 million in debt, borrowed from MF1 Capital and Parke Bank. Within the portfolio, all identified are industrial properties. They are all located in Brooklyn.

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