Hakimian Capital, CH Capital, Empire Capital, others pay $320M to RXR, Blackstone Group for 1330 Sixth Ave.

Hakimian Capital, CH Capital Group, Creed Equities, Nassimi Realty, and Empire Capital Holdings through the entity 1330 Ce26 LLC (and others) paid $320 million to RXR Realty and Blackstone Group through the entity RXR 1330 Owner LLC for the office building (O4) at 1330 Avenue Of The Americas in Midtown West, Manhattan.
The deal closed on November 17, 2022 and was recorded on November 28, 2022. The property has 500,177 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $639 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 RXR Realty and Blackstone Group was David Frank. The signatories for Hakimian Capital, CH Capital Group, Creed Equities, Nassimi Realty, and Empire Capital Holdings were Mike Nassimi, Matin Hakimi, Sammy Hakimian, and Saeed Stephen Hakakian. The Commercial Observer reported in July 2022 that the sale was in contact.

The brokers were Steven Binswanger, Gary Phillips and Will Silverman of Eastdil Secured, and reported on the $215 million loan. The property is held in a tenants-in-common ownership structure, with three firms holding 29.32 percent: Sammy Hakimian’s Hakimian Capital, Stephen Saeed Hakimian’s Creed Equities and Matin Hakimi’s CH Capital Group, then Mike Nassimi’s Nassimi Realty with 9.77 percent and Empire Capital with 2.26 percent, according to the loan documents.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Hakimian Capital had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller RXR Realty purchased nine properties in three transactions for a total of $343 million and had not sold any properties over the same time period. The 500,177-square-foot property generated revenue of $39.2 million or $78 per square foot, according to the most recent income and expense figures.

The property

The 1330 Avenue Of The Americas parcel has frontage of 200 feet and is 117 feet deep with a total lot size of 21,606 square feet. The lot is irregular. The zoning is C6-6 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $141.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $2,850 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 $5 million on this tax lot.

The neighborhood

In Midtown West, the majority, or 73 percent of the 77.7 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Midtown West is the 2nd most active neighborhood among other neighborhoods. It had 10.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the six commercial properties representing 1,200,080 square feet of the 2,733,268 square feet. The identified owner is Pontiac Land Group.
On the tax block, there was one new building construction project filed totaling 562,949 square feet. It is a 180-unit, 562,949-square-foot R-2 building developed by David Penick with plans filed January 3, 2013 and permitted July 13, 2015.

The majority, or 76 percent of the 933,148 square feet of built space are office buildings, with elevator buildings next occupying 24 percent of the space.

The seller

The PincusCo database currently indicates that Blackstone Group owned at least 57 commercial properties in New York City with 18,517,757 square feet and a city-determined market value of $3 billion. (Market value is typically about 50% of actual value.) The portfolio has $857.1 million in debt, with top three lenders as Morgan Stanley, TIAA, and PNC Bank respectively. Within the portfolio, the bulk, or 77 percent of the 18,517,757 square feet of built space are elevator properties, with office properties next occupying 8 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Queens next at 16 percent of the space.
The PincusCo database currently indicates that RXR Realty owned at least 27 commercial properties in New York City with 10,771,326 square feet and a city-determined market value of $3.7 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 92 percent of the 10,771,326 square feet of built space are office properties, with elevator properties next occupying 4 percent of the space. The bulk, or 87 percent of the built space, is in Manhattan, with Brooklyn next at 12 percent of the space.

The buyer

The PincusCo database currently indicates that Empire Capital Holdings owned at least four commercial properties in New York City with 207,507 square feet and a city-determined market value of $57.6 million. (Market value is typically about 50% of actual value.) The portfolio has $46.8 million in debt, with top three lenders as LoanCore Capital, Thorofare Capital, and Hakimian Partners respectively. Within the portfolio, the bulk, or 73 percent of the 207,507 square feet of built space are office properties, with hotel properties next occupying 12 percent of the space. The bulk, or 88 percent of the built space, is in Manhattan, with Brooklyn next at 12 percent of the space.

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