Empire Capital, Namdar pay $72M to AEW Capital for office building in Midtown East

Empire Capital Holdings and Namdar Realty Group through the entity Empire 830 Third LLC paid $72 million to AEW Capital Management through the entity Mp 830 Third Avenue, L.L.C for office building (O6) at 830 Third Avenue in Midtown East, Manhattan.
The deal closed on August 29, 2022 and was recorded on September 30, 2022. The property has 150,638 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $477 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 AEW Capital Management was Matthew B. Tracy. The signatory for Empire Capital Holdings and Namdar Realty Group was Matthew K. Scheriff and Arash Rahmani. The Real Deal reported the brokers were Vickram Jambu and Andrew Scandalios of JLL.

The Namdar entity, Third City Realty LLC, owns 95 percent, and the Empire entity, Empire 830 Third LLC, owns 5 percent, according to the transfer records.

To finance the transaction, Empire Capital Holdings and Namdar Realty Group signed an acquisition loan with lender Truist Bank valued at $53.2 million.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Empire Capital Holdings had purchased any other properties and sold three properties in two transactions for a total of $18.6 million over the past 24 months.
The seller AEW Capital Management purchased two properties in two transactions for a total of $136 million and sold two properties in two transactions for a total of $162 million over the same time period. The 150,638-square-foot property generated revenue of $10.9 million or $72 per square foot, according to the most recent income and expense figures.

The property

The 830 3rd Avenue parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,041 square feet. The zoning is C6-6 which allows for up to 15 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 $35.7 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 one DOB violation in the last year.

The neighborhood

In Midtown East, the majority, or 82 percent of the 61.5 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 2nd highest sale turnover among other neighborhoods in the city with $3.3 billion in sales volume in the last two years. For development, Midtown East is the most active neighborhood among other neighborhoods. It had 15.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 24 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 10 commercial properties representing 1,217,015 square feet of the 1,909,304 square feet. The largest owner is Hawkins Way Capital, followed by Feil Organization and then Sonesta International Hotels.
there are no active new building construction projects on this tax block.

The majority, or 63 percent of the 1.5 million square feet of built space are office buildings, with hotel buildings next occupying 33 percent of the space.

The seller

The PincusCo database currently indicates that AEW Capital Management owned at least three commercial properties in New York City with 722,763 square feet and a city-determined market value of $202.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 84 percent of the 722,763 square feet of built space are office properties, with hotel properties next occupying 16 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Namdar Realty Group owned at least 58 commercial properties in New York City with 950,396 square feet and a city-determined market value of $175.1 million. (Market value is typically about 50% of actual value.) The portfolio has $150.6 million in debt, with top three lenders as Benefit Street Partners, Signature Bank, and Ladder Capital respectively. Within the portfolio, the bulk, or 33 percent of the 950,396 square feet of built space are walkup properties, with office properties next occupying 20 percent of the space. The bulk, or 57 percent of the built space, is in Manhattan, with Bronx next at 24 percent of the space.
The PincusCo database currently indicates that Empire Capital Holdings owned at least three commercial properties in New York City with 56,869 square feet and a city-determined market value of $21.9 million. (Market value is typically about 50% of actual value.) The portfolio has $46.8 million in debt, with top three lenders as LoanCore Capital, Thorofare Capital, and Hakimian Partners respectively. Within the portfolio, the bulk, or 44 percent of the 56,869 square feet of built space are hotel properties, with elevator properties next occupying 43 percent of the space. The bulk, or 56 percent of the built space, is in Manhattan, with Brooklyn next at 44 percent of the space.

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