Gencom pays $288.5M to GFI, Elliott for hotel in Midtown West, part of $308M transaction

Miami-based Gencom through the entity Tcpny Owner, LLC paid $288.5 million to GFI Capital Resources Group and Elliott Investment Group through the entity Parker57 LLC for the Thompson Central Park New York, by Hyatt hotel condominium unit at 111 to 119 West 56th Street in Midtown West, Manhattan. The expected use is cash flowing. Media reports put the price at $308 million. In some instances a hotel will sell for a price above the transfer price. The higher price accounts for non-real property assets in the building such as beds, appliances, etc.
The deal closed on September 16, 2024 and was recorded on September 24, 2024. The property has 446,967 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot using the transfer price of $288.5 million is $645 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 GFI Capital Resources Group and Elliott Investment Group was Elliot Greenberg. The signatory for Gencom was Thomas Bezold. The contract date was June 18, 2024. The Real Deal reported on the sale last week with the total price $308 million.

Gencom, according to its website, was founded in 1987 by Karim Alibhai. The formal company name is Gencom Platform. GFI bought the entire building in January 2019 for $389.9 million then divided the building into a hotel condo unit and 99 residential condo units.
Gencom financed the purchase with a $184 million acquisition loan from Affinius Capital,

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Gencom had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller GFI Capital Resources Group had not purchased any other properties and sold two properties in two transactions for a total of $79.2 million over the same time period.

The block

On this tax block, PincusCo has identified the owners of two of the 14 commercial properties representing 116,075 square feet of the 1,597,985 square feet. The two identified owners are Feil Organization and Hasan Biberaj.
There are no active new building construction projects on this tax block.

The majority, or 49 percent of the 1.6 million square feet of built space are hotel buildings, with office buildings next occupying 47 percent of the space.

The seller

The PincusCo database currently indicates that Gfi Capital Resources Group owned at least five commercial properties with 38 residential units in New York City with 204,233 square feet and a city-determined market value of $72 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 81 percent of the 204,233 square feet of built space are hotel properties, with elevator properties next occupying 15 percent of the space. The bulk, or 81 percent of the built space, is in Brooklyn, with Manhattan next at 19 percent of the space.

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