Elad Group pays $72.2M to Walter & Samuels for office in NoMad

Elad Group through the entity 419 Pas LLC paid $72.2 million to Walter & Samuels and Lawrence N. Friedland through the entity 419 Park Avenue South Associates LLC for the office building (O4) at 419 Park Avenue South in NoMad, Manhattan. The expected use is conversion.
The deal closed on August 8, 2024 and was recorded on August 19, 2024. The property has 160,114 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $450 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 Walter & Samuels and Friedland Properties was David I. Berley and Lawrence N. Friedland. The signatory for Elad Group was Orly Daniell. The contract date was July 8, 2024. Elad Group plans to convert the office building into residential condominiums, the Commercial Observer reported.

Elad financed the purchase with the assumption of a $50 million loan from Apple Bank and the assumption of a $7.5 million loan from Lawrence N. Friedland’s Lawland Corp.

Walter & Samuels is under financial pressure from lenders and an internal family dispute.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Elad Group had purchased any other properties and sold four properties in one transaction for a total of $18.2 million over the past 24 months.
The seller Walter & Samuels had not purchased any other properties and sold four properties in four transactions for a total of $42.5 million over the same time period.

The property

The office building in NoMad has 160,114 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 60 feet and is 132 feet deep with a total lot size of 9,674 square feet. The lot is irregular. The zoning is C6-4A 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 $36.4 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 received one DOB violation and $50 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on May 16, 2013. 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 NoMad, The majority, or 66 percent of the 13 million square feet of commercial built space are office buildings, with hotel buildings next occupying 15 percent of the space. In sales, NoMad has near average sales volume among other neighborhoods with $298.7 million in sales volume in the last two years and is the 25th highest in Manhattan. For development, NoMad has 2.2 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 2.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 18 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 13 of the 27 commercial properties representing 237,338 square feet of the 463,378 square feet. The largest owner is Zucker Organization, followed by S.W. Management and then Barry Singer, Trustee.
On the tax block, there were three new building construction projects totaling 102,971 square feet. The largest is a six-unit, 37,911 square-foot hotel/dormitory/shelter (R-1) building submitted by Skyland Management and filed by Daniel Dabakaroff with plans filed July 10, 2018 and it has not been permitted yet. The second largest is a 56-unit, 33,667 square-foot residential (R-2) building submitted by Skyland Management and filed by Daniel Dabakaroff with plans filed August 8, 2018 and it has not been permitted yet.

The majority, or 37 percent of the 463,378 square feet of built space are elevator buildings, with office buildings next occupying 35 percent of the space.

The seller

The PincusCo database currently indicates that Walter & Samuels owned at least 10 commercial properties with 30 residential units in New York City with 548,697 square feet and a city-determined market value of $131.6 million. (Market value is typically about 50% of actual value.) The portfolio has $112.1 million in debt, with top three lenders as Bank of America, Citibank, and Maurice Kohan respectively. Within the portfolio, the bulk, or 80 percent of the 548,697 square feet of built space are office properties, with specialty properties next occupying 14 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Elad Group owned at least three commercial properties in New York City with 4,320 square feet and a city-determined market value of $5.9 million. (Market value is typically about 50% of actual value.) The portfolio has $491.8 million in debt, with top three lenders as Lionheart Strategic Management, Valley National Bank, and G4 Capital Partners respectively. Within the portfolio, the bulk, or 100 percent of the 4,320 square feet of built space are walkup properties, with development properties next occupying 0 percent of the space. They are all located in Manhattan.

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