Deutsche Bank acquires Essex Crossing office, retail from borrower Taconic in $236.9M transfer

Deutsche Bank acquired two office and three retail condominium units valued at $236.9 million in Essex Crossing from Taconic Partners and others at 180 Broome Street and 202 Broome Street, in the Lower East Side of Manhattan. Taconic Partners and others borrowed $285 million from Deutsche Bank in June 2022 secured by these same tax lots. The total in this transfer is 20 percent below the 2022 debt amount. The transfers occurred in four transactions.
Several retail condominium units that were part of Essex Crossing were turned over to lenders in 2023.

In the first, Deutsche Bank through the entity LES Essex Crossing Holdings Acquisition LLC paid $113.7 million to Taconic Partners through the entity Site 4 Dsa Owner LLC for the office condo at 180 Broome Street in Lower East Side, Manhattan. The expected use is cash flowing. The property has 127,584 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $891 per the PincusCo analysis.

Deutsche Bank through the entity LES Essex Crossing Holdings Acquisition LLC paid $108 million to Taconic Partners through the entity Site 3 Dsa Commercial LLC for the office condo at 202 Broome Street in Lower East Side, Manhattan. The expected use is cash flowing. The property has 128,691 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $839 per the PincusCo analysis.

Deutsche Bank through the entity LES Essex Crossing Holdings Acquisition LLC paid $9.2 million to Taconic Partners through the entity Site 3 Dsa Retail LLC for the retail condo at 202 Broome Street in Lower East Side, Manhattan. The expected use is cash flowing. The property has 14,567 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $634 per the PincusCo analysis.

Deutsche Bank through the entity LES Essex Crossing Holdings Acquisition LLC paid $6 million to Taconic Partners through the entity Site 4 Dsa Retail LLC for the retail condo at 180 Broome Street in Lower East Side, Manhattan and retail condo at 180 Broome Street in Lower East Side, Manhattan. The expected use is cash flowing. The two properties have 9,842 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $614 per the PincusCo analysis.

The deals closed on December 11, 2024 and were recorded on December 17, 2024.  The contract dates were December 11, 2024. The signatory for Taconic Partners was Andrew Zlotnick. The signatories for Deutsche Bank were Andrew Mullin and Thomas Vasile.

The neighborhood

In Lower East Side, The majority, or 51 percent of the 23.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Lower East Side has near average sales volume among other neighborhoods with $263.4 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Lower East Side has had very little major development activity relative to other neighborhoods.It had 619,556 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the five commercial properties representing 602,997 square feet of the 629,374 square feet. The largest owner is Gotham Organization, followed by Chinese-American Planning Council and then Nyc Department Of Housing Preservation And Development.
On the tax block, there were five new building construction projects totaling 1,868,584 square feet. The largest is a 366-unit, 519,365 square-foot residential (R-2) building submitted by Gotham Organization and filed by David Picket with plans filed March 6, 2020 and permitted January 28, 2021. The second largest is a 116-unit, 519,365 square-foot residential (R-2) building submitted by Gotham Organization and filed by David Picket with plans filed April 10, 2020 and permitted April 22, 2021.

The majority, or 96 percent of the 629,374 square feet of built space are elevator buildings, with walkup buildings next occupying 4 percent of the space.

The seller

The PincusCo database currently indicates that Taconic Partners owned at least 26 commercial properties with 2,211 residential units in New York City with 2,281,401 square feet and a city-determined market value of $371.4 million. (Market value is typically about 50% of actual value.) The portfolio has $1.3 billion in debt, with top three lenders as Jackson National Life Insurance Company, Apollo Global Management, and Upper Manhattan Empowerment respectively. Within the portfolio, the bulk, or 44 percent of the 2,281,401 square feet of built space are walkup properties, with office properties next occupying 24 percent of the space. The bulk, or 54 percent of the built space, is in Bronx, with Manhattan next at 46 percent of the space.

The buyer

The PincusCo database currently indicates that Deutsche Bank owned at least one commercial property in New York City with 174,804 square feet and a city-determined market value of $36.6 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

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