Formosa Asset Group pays $4.1M to Hidrock for office condo in Garment District

Formosa Asset Group through the entity Formosa23 LLC paid $4.1 million to Hidrock Properties through the entity 3536 Associates LLC for the office condo at 35 West 36th Street in the Garment District, Manhattan.
The deal closed on May 31, 2023 and was recorded on June 15, 2023. The property has 4,520 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $907 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 Hidrock Properties was Sander Jacobowitz. The signatory for Formosa Asset Group was Eric Chen.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Formosa Asset Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Hidrock Properties had not purchased any other properties and sold 18 properties in 14 transactions for a total of $46.7 million over the same time period.

The property

The office condo in Garment District has 4,520 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 4,520 square feet. The city-designated market value for the property in 2022 is $797,604.

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 not received any significant violations 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 Garment District, The majority, or 69 percent of the 51.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 2.5 times the average sales volume among other neighborhoods with $879.1 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Garment District has 3.5 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Manhattan. It had 3.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 29 commercial properties representing 660,424 square feet of the 1,676,094 square feet. The largest owner is Vanbarton Group, followed by Sioni Group and then Olmstead Properties.
On the tax block, there were two new building construction projects totaling 241,773 square feet. The largest is a 313-unit, 194,949 square-foot hotel/dormitory/shelter (R-1) building submitted by Hidrock Properties and filed by Eddie Hidary with plans filed June 14, 2013 and permitted March 3, 2015. The second largest is a 143-unit, 46,824 square-foot hotel/dormitory/shelter (R-1) building submitted by Richard Fung with plans filed December 4, 2014 and permitted March 9, 2017.

The majority, or 65 percent of the 1.7 million square feet of built space are office buildings, with elevator buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Hidrock Properties owned at least seven commercial properties with 88 residential units in New York City with 79,365 square feet and a city-determined market value of $22.7 million. (Market value is typically about 50% of actual value.) The portfolio has $100.8 million in debt, with top three lenders as Citizens Bank, Ladder Capital, and Emerald Creek Capital respectively. Within the portfolio, the bulk, or 54 percent of the 79,365 square feet of built space are elevator properties, with walkup properties next occupying 33 percent of the space. The bulk, or 67 percent of the built space, is in Brooklyn, with Manhattan next at 33 percent of the space.

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