Dalan Management pays $34.6M to buy out partner RWN Real Estate Partners at Grand Central rental

Dalan Management through the entity CC Tic LLC (and others) paid $34.6 million to RWN Real Estate Partners through the entity Rwnih-Rep II 44th Street LLC for an 85 percent stake in the 164-unit residential elevator building (D6) at 230 East 44th Street in Grand Central, Manhattan. Dalan already controlled the remaining 15 percent. The property is owned through a ground lease. The fee is owned by East Forty-Fourth Street L.L.C., with Alexander Gardner as manager.

The deal closed on May 22, 2023 and was recorded on June 14, 2023. The property has 135,315 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $255 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 RWN Real Estate Partners was Ari Shalam. The signatory for Dalan Management was Andrew Wrublin. RWN Real Estate sold an 85 percent stake in the ground lease. In 2015, The Real Deal reported that RWN and Dalan paid $47 million for the property.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Dalan Management purchased one property in one transaction for a total of $7.5 million and sold one property in one transaction for a total of $5.2 million over the past 24 months.
The seller RWN Real Estate Partners had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Andrew Wrublin, head officer and Jamie Lawler, site manager. The business entities are Dalan Management and 44th Street Midtown Holdings Llc. The 135,315-square-foot property generated revenue of $6.8 million or $50 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 164 residential units in Grand Central has 135,315 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 130 feet and is 100 feet deep with a total lot size of 13,054 square feet. The zoning is C5-2 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 $37 million. The most recent loan totaled $39 million and was provided by Popular Bank on September 10, 2019.

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 two housing violations and $850 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 20, 2014. 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 six of the 12 commercial properties representing 938,790 square feet of the 1,213,909 square feet. The largest owner is Sol Goldman Investments, followed by Global Securitization Services Anonymous Entity and then Dalan Management.
There are no active new building construction projects on this tax block.

The majority, or 72 percent of the 1.2 million square feet of built space are office buildings, with elevator buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that RWN Real Estate Partners owned at least two commercial properties with 18 residential units in New York City with 23,803 square feet and a city-determined market value of $7.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 61 percent of the 23,803 square feet of built space are office properties, with walkup properties next occupying 39 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Dalan Management owned at least 41 commercial properties with 1,700 residential units in New York City with 1.6 million square feet.

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