Gerald Shallo pays $7.6M for loft building in Flatiron District through foreclosure

Gerald Shallo through the entity 55 W 19 Aiovs LLC paid the former lender, Series 2017-C42, $7.6 million for an office building (O5) at 55 West 19th Street in Flatiron District, Manhattan, through a foreclosure process. The building was constructed in 1854, city records show.
The deal closed on August 28, 2024 and was recorded on August 30, 2024. The property has 9,508 square feet of built space and 13,746 square feet of additional air rights for a total buildable of 23,260 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $798 and the price per buildable square foot is $326 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 former owners bought the property on October 21, 2014, for $8.5 million. The signatory for Series 2017-C42 was Roger Pierro Jr. The signatory for Gerald Shallo was Gerald Shallo. The contract date was August 28, 2024. This sale occurred in two parts, first a judicial foreclosure with a $50,000 auction sale price, then an equity transfer via an RPTT document. A James Shallo is the general manager of the Maramoneck Beach + Yacht Club, which is the address of the buyer entity Gerald Shallo signed for. The foreclosure case was index number 651246/2022, with the plaintiffs being Series 2017-C42 and special servicer LNR Partners and defendants were Daniel J. Deutsch and Galit Levy Deutsch.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Gerald Shallo had purchased any other properties and sold one property in one transaction for a total of $21 million over the past 24 months.
The seller Series 2017-C42 had not purchased any other properties and had not sold any properties over the same time period.

The property

The office building with one residential unit in Flatiron District has 9,508 square feet of built space and 13,746 square feet of additional air rights for a total buildable of 23,260 square feet according to a PincusCo analysis of city data. The parcel has frontage of 28 feet and is 92 feet deep with a total lot size of 2,326 square feet. The lot is irregular. The zoning is C6-4A 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 property is in the Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $2.6 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 $1,100 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 Flatiron District, The majority, or 71 percent of the 23.2 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has 1.2 times the average sales volume among other neighborhoods with $320.1 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, Flatiron District has 2.7 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Manhattan. It had 2.9 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. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 10 of the 23 commercial properties representing 676,741 square feet of the 992,313 square feet. The largest owner is L&L Holding, followed by Block Buildings and then Rosen Equities.
There are no active new building construction projects on this tax block.

The majority, or 88 percent of the 992,313 square feet of built space are office buildings, with mixed-use buildings next occupying 5 percent of the space.

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