Collegiate School pays $10M to Extell Development for retail in Lincoln Square

Collegiate School through the entity 301 Freedom Place South, LLC paid $10 million to Extell Development through the entity Extell Riverside II LLC for the retail condo at 50 Riverside Boulevard in Lincoln Square, Manhattan.
The deal closed on April 11, 2023 and was recorded on April 20, 2023. The property has 9,265 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,079 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 seller bought the unit and two others on October 9, 2015, from Carlyle Group for $10.3 million. The signatory for Extell Development was Gary Barnett. The signatory for Collegiate School was Jonathan Youngwood. This is the retail condo unit.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Collegiate School had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Extell Development purchased 34 properties in seven transactions for a total of $1.2 billion and sold 53 properties in 51 transactions for a total of $979.2 million over the same time period.

The property

The retail condo in Lincoln Square has 9,265 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 9,265 square feet. The property has a 421A exemption that started in 2018 and expires in 2038. The city-designated market value for the property in 2022 is $3.6 million. The most recent loan totaled $16.2 million and was provided by New York Community Bank on May 1, 2022.

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.

Development

For the tax lot building, it received its initial certificate of occupancy on March 31, 2015. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by 50 RIVERSIDE BLVD LLC to create 219 residential units and 4 commercial units in a building at 50 Riverside Boulevard in Lincoln Square, Manhattan, called One Riverside Park Condominiumthat has a $869.1 million sellout, according to an May 8, 2013 submission to the New York State Attorney General. The principal of the sponsor, 50 RIVERSIDE BLVD LLC, was Gary Barnett.

The neighborhood

In Lincoln Square, The majority, or 61 percent of the 19.1 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 24 percent of the space. In sales, Lincoln Square has the 8th highest sale turnover among other neighborhoods in the city with $2 billion in sales volume in the last two years. For development, Lincoln Square has 1.2 times the average amount of major developments relative to other neighborhoods and is the 22nd highest in Manhattan. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 36 commercial properties representing 3,345,899 square feet of the 3,963,158 square feet. The largest owner is Taconic Partners, followed by Gid Real Estate Investments and then Equity Residential.
On the tax block, there were six new building construction projects totaling 3,027,811 square feet. The largest is a 645-unit, 878,798 square-foot residential (R-2) building submitted by GID Real Estate Investments and filed by John Gagnier with plans filed May 6, 2015 and permitted December 13, 2016. The second largest is a 361-unit, 754,739 square-foot residential (R-2) building submitted by Elad Group and filed by Yoel Shargian with plans filed October 2, 2013 and permitted April 3, 2015.

The majority, or 95 percent of the 4 million square feet of built space are elevator buildings, with specialty buildings next occupying 5 percent of the space.

The seller

The PincusCo database currently indicates that Extell Development owned at least 54 commercial properties with 671 residential units in New York City with 3,251,436 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $5.4 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and Prudential Credit Opportunities respectively. Within the portfolio, the bulk, or 34 percent of the 3,251,436 square feet of built space are elevator properties, with specialty properties next occupying 33 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Brooklyn next at 3 percent of the space.

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