Gulf Coast Commercial pays $4M to Related Companies for mixed-use in Chelsea

Florida-based Gulf Coast Commercial through the entity 559 West 22nd Development, LLC paid $4 million to Related Companies through the entity 22nd And 11th Associates, L.L.C. for the mixed-use building (K9) at 162 11th Avenue in Chelsea, Manhattan. The expected use is cash flowing.
The deal closed on April 27, 2026 and was recorded on April 30, 2026. The property has 7,408 square feet of built space and 6,515 square feet of additional air rights for a total buildable of 13,919 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $539 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 seller bought the property on October 10, 2017, for $16.6 million. The signatory for Related Companies was Andrew Orchulli . The signatory for Gulf Coast Commercial was Philip J. McCabe . The contract date was February 27, 2026. Related utilized 6,538 square feet of the excess development rights for its apartment project at 555 West 22nd Street, in 2019.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has no record that the buyer Gulf Coast Commercial had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Related Companies purchased five properties in five transactions for a total of $1.3 billion and sold 80 properties in 73 transactions for a total of $2.2 billion over the same time period. The former owner according to the Department of Housing Preservation and Development is Andrew Orchulli, head officer. The business entity is 22nd And 11th Associates, L.L.C. The 7,408-square-foot property generated revenue of $436,109 or $59 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building in Chelsea has 7,408 square feet of built space and 6,515 square feet of additional air rights for a total buildable of 13,919 square feet according to a PincusCo analysis of city data. The parcel has frontage of 24 feet and is 75 feet deep with a total lot size of 1,851 square feet. The zoning is C6-3 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 7.52 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.9 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 two DOB violations in the last year.

Development

On the lot, there was a major alteration project for a three-unit, 7,360 square-foot residential (R-2) building submitted by Andrew Orchulli of Related Companies under job number, 121207924, with plans filed May 5, 2020 and it has not been permitted yet.

The neighborhood

In Chelsea, The bulk, or 35 percent of the 52.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 8th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Chelsea has 1.9 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Manhattan. It had 3.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 15 commercial properties representing 677,439 square feet of the 816,174 square feet. The largest owner is Related Companies, followed by Safehold Inc. and then Meadow Partners.
On the tax block, there was one new building construction project filed totaling 27,766 square feet. It is a 13-unit, 27,766 square-foot residential (R-2) building submitted by Christopher Jonns with plans filed March 8, 2017 and it has not been permitted yet.

The majority, or 66 percent of the 816,174 square feet of built space are elevator buildings, with industrial buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Related Companies owned at least 143 commercial properties with 11,728 residential units in New York City with 27,975,802 square feet and a PincusCo-determined asset value of $21.1 billion. The portfolio has $7.7 billion in debt, with top three lenders as Wells Fargo, Wells Fargo, and Deutsche Bank respectively. Within the portfolio, the bulk, or 29 percent of the 27,975,802 square feet of built space are condo properties, with elevator properties next occupying 25 percent of the space. The bulk, or 75 percent of the built space, is in Manhattan, with Queens next at 11 percent of the space.

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