Gotham Organization pays $79M to Covenant House for Hell’s Kitchen dev site
Gotham Organization through the entity GO Covenant LLC paid $79 million to Covenant House through the entity 460 West 41st St LLC for industrial (I5) at 550 10th Avenue in Hell’s Kitchen, Manhattan. The sale has been in the works since at least 2017, when a memorandum of contract was signed for the sale. This parcel is the site for the development of Gotham’s 453-unit rental building.
The deal closed on November 12, 2021 and was recorded on November 29, 2021, and is based on a contract dated January 12, 2018.
The property has 98,830 square feet of built space and 60,568 square feet of additional air rights for a total buildable of 159,390 square feet according to PincusCo analysis of city data, but the planned development is much larger and is utilizing additional air rights. The sale price per built square foot is $799 and the price per buildable square foot is $495 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 Covenant House was Deirdre Cronin. The signatory for Gotham Organization was David L. Picket.
(121209281) Plans for a 453-unit, 428,208-square-foot R-2 were filed on January 22, 2021.
The Gotham Organization began developing this property earlier, the contract is dated 2018. Gotham obtained a $250 million construction loan, Crain’s reported this month.
Within a 400-foot radius of 550 10th Avenue, Pincusco identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, three were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $1.3 million, one permit with a total initial cost of $1.3 million and one initial temporary certificate of occupancy issuance for a project that initially costed $1.5 million. The most recent of these three items was the permit on April 30, 2021 for a 55,575-square-foot R-2 building with 105 residential units at 440 West 41st Street.
Of those six items, three were loans above $5 million totaling $539.0 million. The most recent of the three was Camber Property Group which borrowed $41.0 million from Citibank secured by the 64,662-square-foot, 106-unit rental (D6) on 440 West 41st Street on June 9, 2021.
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