Ground tenant Cannon Hill Capital pays $38M to Williams Equities for fee in Flatiron District

The ground lease tenant Cannon Hill Capital Partners through the entity 880 Broadway Tenant, LLC paid $38 million to Williams Equities through the entity 33 Realty Associates, L.P. for the fee interest in land occupied by a retail building (O6) at 33 East 18th Street in the Flatiron District, Manhattan. The expected use is cash flowing.
The deal closed on February 10, 2025 and was recorded on February 25, 2025. The property has 142,400 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $266 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 Williams Equities was William Stempel . The signatory for Cannon Hill Capital Partners was Eric Rubin . The contract date was February 10, 2025.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Cannon Hill Capital Partners had purchased any other properties and sold one property in one transaction for a total of $66.5 million over the past 24 months.
The seller Williams Equities purchased one property in one transaction for a total of $147.5 million and sold one property in one transaction for a total of $159.4 million over the same time period.

The property

The retail building in Flatiron District has 142,400 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 47 feet and is 184 feet deep with a total lot size of 12,400 square feet. The lot is irregular. The zoning is M1-5M which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $54.3 million. The most recent loan totaled $106.3 million and was provided by TPG Real Estate Partners on September 18, 2019.

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 two DOB violations and $5,650 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project, 123502192, for a 101,725 square-foot B building. The project was submitted by Luis Iglesias Jr with plans filed May 4, 2018 and permitted February 26, 2019.

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 2 times the average sales volume among other neighborhoods with $535.6 million in sales volume in the last two years and is the 21st 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 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of five of the eight commercial properties representing 1,009,956 square feet of the 1,106,174 square feet. The largest owner is Winter Management, followed by TF Cornerstone and then Invesco Real Estate.
There are no active new building construction projects on this tax block.

The majority, or 90 percent of the 1.1 million square feet of built space are office buildings, with retail buildings next occupying 9 percent of the space.

The seller

The PincusCo database currently indicates that Williams Equities owned at least three commercial properties in New York City with 780,119 square feet and a city-determined market value of $379.9 million. (Market value is typically about 50% of actual value.) The portfolio has $320 million in debt, with top three lenders as Citibank, MetLife, and 3650 REIT respectively. Within the portfolio, all identified are office properties. They are all located in Manhattan.

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