Covenant House pays $7.5M to Gotham Org in long-planned transaction in Hudson Yards

The nonprofit Covenant House through the entity Covenant House Innovation Center LLC paid $7.5 million to Gotham Organization through the entity GO Covenant LLC for a commercial condominium unit at 475 West 40th Street in Hudson Yards, Manhattan. The expected use is owner-occupied. This is a long-planned transaction that was part of the development deal involving Gotham as developer in exchange, in part, for the construction of this approximately 27,000-square-foot commercial condo unit, on the first, second and third floors.
The deal closed on March 28, 2025 and was recorded on April 1, 2025.
The signatory for Gotham Organization was David L. Picket . The signatory for Covenant House was John Ducoff. The contract date was November 12, 2021. This sale was planned as part of the larger development including affordable youth housing.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Covenant House had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Gotham Organization purchased eight properties in five transactions for a total of $481.5 million and sold four properties in three transactions for a total of $206.6 million over the same time period.

The property

PincusCo cannot determine the lot area of the 475 West 40th Street parcel at this time. The most recent loan totaled $43.5 million and was provided by Wells Fargo on September 23, 2024.

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 block

On this tax block, PincusCo has identified the owners of two of the seven commercial properties representing 98,830 square feet of the 389,271 square feet. The two identified owners are Gotham Organization and Port Authority Of New York And New Jersey.
On the tax block, there was one new building construction project filed totaling 428,208 square feet. It is a 453-unit, 428,208 square-foot residential (R-2) building submitted by Gotham Organization and filed by Bryan Kelly with plans filed January 22, 2021 and permitted July 14, 2022.

The majority, or 89 percent of the 389,271 square feet of built space are specialty buildings, with walkup buildings next occupying 10 percent of the space.

The seller

The PincusCo database currently indicates that Gotham Organization owned at least eight commercial properties with 2,653 residential units in New York City with 1,653,507 square feet and a city-determined market value of $101 million. (Market value is typically about 50% of actual value.) The portfolio has $662.9 million in debt, borrowed from Wells Fargo. Within the portfolio, the bulk, or 64 percent of the 1,653,507 square feet of built space are D6 properties, with elevator properties next occupying 28 percent of the space. The bulk, or 64 percent of the built space, is in Queens, with Manhattan next at 36 percent of the space.

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