Gabriel Khezrie, Ezra Erani pay $77M to Columbia Property Trust for office in Park Avenue South

Gabriel Khezrie and Ezra Erani through the entity 149 Madison SPE LLC paid $77 million to Columbia Property Trust through the entity Columbia Reit- 149 Madison, LLC for the office building (O6) at 149 Madison Avenue in Park Avenue South, Manhattan.
The deal closed on February 6, 2023 and was recorded on February 8, 2023.The property has 119,006 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $647 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 along with a larger portfolio on December 8, 2021, for $1.4 billion. The signatory for Columbia Property Trust was Travis Feehan. The signatory for Gabriel Khezrie and Ezra Erani was Gabriel Khezrie. Gabriel Khezrie is ceo of Enchante Accessories.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Gabriel Khezrie had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Columbia Property Trust had not purchased any other properties and sold nine properties in three transactions for a total of $1.7 billion over the same time period.

The property

The 147 Madison Avenue parcel has frontage of 49 feet and is 140 feet deep with a total lot size of 6,918 square feet. The zoning is C5-2 which allows for up to 10 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 $21.9 million.The most recent loan totaled $52.3 million and was provided by Goldman Sachs|Deutsche Bank|Citibank on December 3, 2021.

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 two DOB violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Park Avenue South, the majority, or 67 percent of the 9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 16 percent of the space. In sales, Park Avenue South has had very little sales volume relative to other neighborhoods with $228.2 million in sales volume in the last two years. For development, Park Avenue South has near average amount of major developments among other neighborhoods and is the 25th highest in Manhattan. It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 27 commercial properties representing 282,854 square feet of the 2,095,162 square feet. The largest owner is Pimco, followed by General Leasing & Management and then Elijah Equities.
there are no active new building construction projects on this tax block.

the majority, or 71 percent of the 2.1 million square feet of built space are office buildings, with elevator buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Columbia Property Trust owned at least four commercial properties in New York City with 1,856,657 square feet and a city-determined market value of $228.4 million. (Market value is typically about 50% of actual value.) The portfolio has $208.9 million in debt, borrowed from JPMorgan Chase. Within the portfolio, all identified are office properties. They are all located in Manhattan.

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