GLP Capital pays $61.6M to InSite for 89% stake in Yorkville industrial property

Global logistics firm GLP Capital Partners through the entity GCP Securespace Property Holdings Sub III LLC paid $61.6 million to InSite Property Group through the entity Securespace Construction Mezzanine Borrower LLC for the industrial building (E7) at 434 East 90th Street in Yorkville, Manhattan.
This is an equity level purchase of an 89.41 percent stake. GLP Capital Partners has a relationship with InSite Property Group. In a similar transaction a year ago, GLP Capital Partners paid InSite $63 million for a 68 percent stake in a Maspeth property.
The deal closed on November 3, 2023 and was recorded on November 20, 2023. The property has 118,593 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $519 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.)

Prior sales and revenue

Prior to this transaction, PincusCo has a record that the buyer GLP Capital Partners had purchased one other property and has no record it sold any properties over the past 24 months.
The seller InSite Property Group purchased four properties in three transactions for a total of $26.9 million and sold three properties in three transactions for a total of $167.4 million over the same time period.

The property

The industrial building in Yorkville has 118,593 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 144 feet and is 100 feet deep with a total lot size of 14,501 square feet. The zoning is C8-4 which allows for up to 5 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $11.5 million. The most recent loan totaled $42.1 million and was provided by ACORE Capital on February 18, 2022.

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 $5,000 in ECB penalties and $6,100 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a 103,412 square-foot S-1 building. The project was submitted by Parkland Group and filed by Steven Brauser with plans filed June 25, 2021 and permitted October 27, 2021.

The neighborhood

In Yorkville, The majority, or 61 percent of the 26.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Yorkville has 2.1 times the average sales volume among other neighborhoods with $737.7 million in sales volume in the last two years and is the 18th highest in Manhattan. For development, Yorkville has had very little major development activity relative to other neighborhoods.It had 709,355 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the three commercial properties representing zero square feet of the 109,921 square feet. The identified owner is InSite Property Group.
On the tax block, there was one new building construction project filed totaling 103,412 square feet. It is a 103,412 square-foot storage (S-1) building submitted by Parkland Group and filed by Steven Brauser with plans filed June 25, 2021 and permitted October 27, 2021.

The majority, or 50 percent of the 109,921 square feet of built space are walkup buildings, with specialty buildings next occupying 50 percent of the space.

The seller

The PincusCo database currently indicates that InSite Property Group owned at least seven commercial properties in New York City with 109,004 square feet and a city-determined market value of $24.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 56 percent of the 109,004 square feet of built space are industrial properties, with development properties next occupying 27 percent of the space. The bulk, or 51 percent of the built space, is in Queens, with Manhattan next at 46 percent of the space.

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