ESRT pays $188M to Fetner Properties for 417-unit elevator building, retail in Hell’s Kitchen

Empire State Realty Trust paid $188 million to Fetner Properties for the 417-unit residential elevator building and a retail condominium unit in Hell’s Kitchen. Fetner retained a small ownership stake in the new structure.

In the larger transaction, Empire State Realty Trust through the entity ESRT Mv Swap Victory Owner, L.L.C. paid $153.3 million to Fetner Properties through the entity 501 West 41st Street Associates, LLC for 417-unit residential elevator building at 561 10th Avenue in Hell’s Kitchen, Manhattan.

To finance the purchase, Fetner Properties and Empire State Realty Trust through the entity 501 West 41st Street Associates, LLC as borrower signed an acquisition loan with lender NYS Housing Finance Agency and Federal Home Loan Mortgage Corporation valued at $183 million for two properties including the 417-unit residential elevator building at 561 10th Avenue in Hell’s Kitchen, Manhattan and the retail condo at 500 West 42nd Street in Hell’s Kitchen, Manhattan.

The deal closed on December 22, 2021 and was recorded on February 11, 2022.
The property has 411,430 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $372 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 September 30, 2014, for $5.9 million.
The signatory for Fetner Properties was Harold A. Fetner. The signatory for Empire State Realty Trust was Thomas N. Keltner Jr..

The 411,430-square-foot property generated revenue of $13.3 million or $32 per square foot, according to the most recent income and expense figures.

This is part of Fetner Properties’ sale of two towers to Empire Realty Trust.

The owners according to the Department of Housing Preservation and Development includes Harold Fetner, head officer and Nestor Cevallos, site manager. The business entities are Fetner Management Llc and 501 West 41st Street Assoc Llc.

Direct link to Acris document. link

In the second transaction, Empire State Realty Trust through the entity Esrt Mv Swap Victory Owner, L.L.C. paid $34.6 million to Fetner Properties through the entity 501 West 41st Street Associates, LLC for property at 500 West 42nd Street in Hell’s Kitchen, Manhattan. This is a 6,110-square-foot retail unit.
The deal closed on December 22, 2021 and was recorded on February 11, 2022.
The property has 6,110 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $5,660 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 Fetner Properties was Harold A. Fetner. The signatory for Empire State Realty Trust was Thomas N. Keltner Jr..

On the tax block, the majority, or 73 percent of the 615,167 square feet of built space are residential elevator buildings, with hotel buildings next occupying 13 percent of the space.
Within a 400-foot radius of 500 West 42nd Street, Pincusco identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, one was in new building development. It was a new building permit application filed on January 22, 2021 for a 428,208-square-foot R-2 building with 453 residential units at 550 10th Avenue.
One of those four items was a sale which Gotham Organization bought the 98,830-square-foot, one-unit industrial (I5) on 550 10th Avenue for $79 million from Covenant House on November 29, 2021.
Of those four items, two were loans above $5 million totaling $309.5 million. The most recent of the two was Gotham Organization which borrowed $211.5 million from Wells Fargo secured by the 98,830-square-foot, one-unit industrial (I5) on 550 10th Avenue on December 14, 2021.

Direct link to Acris document. link