Extended Management pays $6M for office in Hudson Square

Extended Management through the entity 285 Hudson Ventures LLC paid $6 million to Rona Rice and Susan M. Rice through the entity Interstate Casing Corporation for the office building (O9) at 285 Hudson Street in Hudson Square, Manhattan.
The deal closed on June 28, 2023 and was recorded on July 3, 2023. The property has 6,125 square feet of built space and 7,425 square feet of additional air rights for a total buildable of 13,545 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $971 and the price per buildable square foot is $439 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 Rona Rice and Susan M. Rice was Rona Rice and Susan M. Rice. The signatory for Extended Management was Jason Kimmel. Interstate Casing Corporation was owned by members of the Rice and Silver families. No debt was recorded as an acquisition loan.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Extended Management purchased one property in one transaction for a total of $13 million and has no record it sold any properties over the past 24 months.
The seller Rona Rice had not purchased any other properties and had not sold any properties over the same time period. The 6,125-square-foot property generated revenue of $328,907 or $54 per square foot, according to the most recent income and expense figures.

The property

The office building with 1 residential units in Hudson Square has 6,125 square feet of built space and 7,425 square feet of additional air rights for a total buildable of 13,545 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 90 feet deep with a total lot size of 2,250 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.5 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 two housing violations and $300 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 $1 million on this tax lot.

The neighborhood

In Hudson Square, The majority, or 76 percent of the 11.9 million square feet of commercial built space are office buildings, with industrial buildings next occupying 8 percent of the space. In sales, Hudson Square has 2 times the average sales volume among other neighborhoods with $721.2 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, Hudson Square has had very little major development activity relative to other neighborhoods.It had -5,650,598 square feet of commercial and multi-family construction under development in the last two years, which represents -47.66 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 19 commercial properties representing 121,157 square feet of the 225,783 square feet. The identified owner is Ponte Equities.
On the tax block, there were three new building construction projects totaling 59,892 square feet. The largest is a 14-unit, 24,061 square-foot residential (R-2) building submitted by Joel Braver with plans filed January 3, 2018 and permitted August 20, 2019. The second largest is a 14-unit, 23,802 square-foot residential (R-2) building submitted by Joel Braver with plans filed September 23, 2014 and it has not been permitted yet.

The majority, or 37 percent of the 225,783 square feet of built space are hotel buildings, with office buildings next occupying 21 percent of the space.

The buyer

The PincusCo database currently indicates that Extended Management owned at least three commercial properties with 16 residential units in New York City with 50,747 square feet and a city-determined market value of $15 million. (Market value is typically about 50% of actual value.) The portfolio has $15 million in debt, borrowed from OceanFirst Bank. Within the portfolio, the bulk, or 82 percent of the 50,747 square feet of built space are industrial properties, with walkup properties next occupying 18 percent of the space. They are all located in Manhattan.

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