Global Holdings pays $30.7M to Springhouse Partners for 56-unit rental in Gramercy

Global Holdings Management Group through the entity GH 51 Irving LLC paid $30.7 million to Springhouse Partners through the entity Sp Irving Owner LLC for the 56-unit residential elevator building (D6) at 51 Irving Place in Gramercy, Manhattan. Springhouse Partners paid $55.5 million for the property in 2016.
The deal closed on June 15, 2023 and was recorded on June 21, 2023. The property has 42,476 square feet of built space and 5,055 square feet of additional air rights for a total buildable of 47,551 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $722 and the price per buildable square foot 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.)
Global Holdings financed the purchase with a $23 million loan from Citibank.
The signatory for Springhouse Partners was Adam Verner. The signatory for Global Holdings Management Group was Peter Allen.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Global Holdings Management Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Springhouse Partners had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Adam Verner, head officer and Marco Deutelmoser, site manager. The business entities are Tissa Management and Sp Irving Owner Llc. The 42,476-square-foot property generated revenue of $3.1 million or $73 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 56 residential units in Gramercy has 42,476 square feet of built space and 5,055 square feet of additional air rights for a total buildable of 47,551 square feet according to a PincusCo analysis of city data. The parcel has frontage of 79 feet and is 100 feet deep with a total lot size of 7,899 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $17.1 million.

Violations and lawsuits

There was one lawsuit filed against the property for the past 24 months. In in, an individual who alleges he invested $250,000 in the $55.5 million purchase in 2016 of the 56-unit mixed-use rental building at 51 Irving Place, in Gramercy, claims the owners including Springhouse Partners want to sell the property “at a loss.”
Court filings represent the positions of one party and are not necessarily accurate or complete. In addition, according to city public data, the property has received three housing violations and $3,140 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 block

On this tax block, PincusCo has identified the owners of four of the 17 commercial properties representing 516,925 square feet of the 892,192 square feet. The largest owner is SL Green Realty, followed by Scharfman Organization and then Marriott International.
There are no active new building construction projects on this tax block.

The majority, or 36 percent of the 892,192 square feet of built space are elevator buildings, with office buildings next occupying 32 percent of the space.

The buyer

The PincusCo database currently indicates that Global Holdings Management Group owned at least two commercial properties with 404 residential units in New York City with 536,645 square feet and a city-determined market value of $221.6 million. (Market value is typically about 50% of actual value.) The portfolio has $490 million in debt, borrowed from Wells Fargo and HSBC Bank. Within the portfolio, the bulk, or 76 percent of the 536,645 square feet of built space are elevator properties, with office properties next occupying 24 percent of the space. They are all located in Manhattan.

Direct link to Acris document. link