Daryl Hagler affiliate pays $50M for St. Giles Hotel in Grand Central

An affiliate of investor Daryl Hagler through the entity 130 East 39 LLC paid $50 million to Joseph Sambuco’s St. Giles Hotels through the entity St. Giles Hotel, LLC for the 203-room St. Giles Hotel (H1) at 130 East 39th Street in Grand Central, Manhattan.
The deal closed on December 30, 2022 and was recorded on January 5, 2023. The property has 132,716 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $376 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 property on April 15, 2010, for $48.4 million. The signatory for St. Giles Hotels was Joseph Sambuco. The signatory for the Daryl Hagler affiliate was Brooklyn attorney Jeffrey Zwick. The buyer entity, 130 East 39 LLC, is a New York limited liability company having a principal place of business at 4770 White Plains Road, Bronx, which is the headquarters for Hagler’s Centers Health Care. Hagler bought a Long Island City development site last year for $63 million, and a $42.4 million Crown Heights development site, among other real estate activity.

Prior sales and revenue

The seller St. Giles Hotels 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 Abigail Tan, head officer and Lisa Grossberg, lessee. The business entities are St Giles Hotel, Llc and St Giles Hotel, Llc.

The property

The 130 East 39th Street parcel has frontage of 118 feet and is 95 feet deep with a total lot size of 10,887 square feet. The lot is irregular. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $23.4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received three DOB violations and $2,600 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Grand Central, the majority, or 81 percent of the 43.5 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Grand Central has 2.8 times the average sales volume among other neighborhoods with $980.9 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Grand Central has 1.7 times the average amount of major developments relative to other neighborhoods and is the 17th highest in Manhattan. It had 1.8 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 seven of the 46 commercial properties representing 139,867 square feet of the 646,531 square feet. The largest owner is HUBB NYC, followed by Solil Management and then Sol Goldman Investments.
There are no active new building construction projects on this tax block.

The majority, or 37 percent of the 623,830 square feet of built space are elevator buildings, with hotel buildings next occupying 35 percent of the space.

The buyer

The PincusCo database currently indicates that Daryl Hagler owned at least three commercial properties in New York City with 263,246 square feet and a city-determined market value of $9.8 million. (Market value is typically about 50% of actual value.) The portfolio has $121.9 million in debt, with top three lenders as Popular Bank, Benzion Lebovits, and M&T Bank respectively. Within the portfolio, the bulk, or 69 percent of the 263,246 square feet of built space are hotel properties, with office properties next occupying 18 percent of the space. The bulk, or 69 percent of the built space, is in Queens, with Bronx next at 18 percent of the space.

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