Construction company sells Chelsea office building for $15.9M, likely dev site

A company with anonymous ownership, HW Development 3 LLC, paid $15.9 million to Henegan Construction through the entity Bridget Realty, LLC for the office building (O2) at 250 West 30th Street in Chelsea, Manhattan. Based on the sale price per foot, PincusCo concludes that this is a development sale, but that is not confirmed.
The deal closed on December 22, 2023 and was recorded on January 8, 2024. The property has 14,811 square feet of built space and 34,559 square feet of additional air rights for a total buildable of 49,370 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,071 and the price per buildable square foot is $321 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 Henegan Construction was Maureen A. Henegan. The signatory for Hw Development 3 LLC was Heli Sung. The contract date was September 26, 2023. The buyer is in care of the Flushing-based accounting firm Yuxin Yang CPA.

Prior sales and revenue

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

The property

The office building in Chelsea has 14,811 square feet of built space and 34,559 square feet of additional air rights for a total buildable of 49,370 square feet 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 4,937 square feet. The zoning is M1-6D which allows for up to 10 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $2.6 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.

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 Chelsea, The bulk, or 36 percent of the 52.4 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 9th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Chelsea has 2 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 19 of the 32 commercial properties representing 836,823 square feet of the 1,351,585 square feet. The largest owner is Yan Zou, followed by Son Dinh Tran and then Solil Management.
There are no active new building construction projects on this tax block.

The majority, or 80 percent of the 1.4 million square feet of built space are office buildings, with elevator buildings next occupying 16 percent of the space.

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