Fata Organization pays $6.3M for retail in Harlem, owns adjacent building

UPDATED 1:25 p.m., June 5, 2024: Fata Organization through the entity 250 West FO, LLC paid $6.3 million to Rockfeld Group through the entity Fdb 250 LLC for the retail building (K1) at 250 West 125th Street in Harlem, Manhattan. Fata Organization owns 246 West 125th Street.
The deal closed on May 16, 2024 and was recorded on June 3, 2024. The property has 2,375 square feet of built space and 16,594 square feet of additional air rights for a total buildable of 18,965 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $2,652 and the price per buildable square foot is $332 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 June 19, 2007, for $20 million. The signatory for Rockfeld Group was Steven Feldman. The signatory for Fata Organization was Enzo Fata. The contract date was April 4, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Fata Organization had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Rockfeld Group had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail building in Harlem has 2,375 square feet of built space and 16,594 square feet of additional air rights for a total buildable of 18,965 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,522 square feet. The zoning is C6-3 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 7.52 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.3 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 $900 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 Harlem, The bulk, or 43 percent of the 81 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, Harlem has 2.3 times the average sales volume among other neighborhoods with $628 million in sales volume in the last two years and is the 14th highest in Manhattan. For development, Harlem has 2.9 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 3.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 10 of the 12 commercial properties representing 377,216 square feet of the 530,617 square feet. The largest owner is Wharton Properties, followed by Solil Management.
There are no active new building construction projects on this tax block.

The majority, or 31 percent of the 530,617 square feet of built space are office buildings, with specialty buildings next occupying 28 percent of the space.

The seller

The PincusCo database currently indicates that Rockfeld Group owned at least 13 commercial properties with seven residential units in New York City with 88,521 square feet and a city-determined market value of $39 million. (Market value is typically about 50% of actual value.) The portfolio has $78.3 million in debt, with top three lenders as Goldman Sachs, Granite Point Mortgage Trust, and Northfield Bank respectively. Within the portfolio, the bulk, or 39 percent of the 88,521 square feet of built space are mixed-use properties, with retail properties next occupying 34 percent of the space. The bulk, or 60 percent of the built space, is in Manhattan, with Brooklyn next at 40 percent of the space.

Correction: A prior version of this post identified this as a likely development deal, but a source indicated that was not the case.

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