Harkham Ventures pays $11M to Corigin for mixed-use in Little Italy, follows on $10.5M Soho purchase
Los Angeles-based investment firm Harkham Ventures through the entity 21 Crosby Property, LLC paid $11 million to Corigin Real Estate Group and Corigin through the entity 21 Crosby Street LLC for three-unit mixed-use building at 21 Crosby Street, with an alternate address of 133 Grand Street in Little Italy, Manhattan.
The deal closed on April 28, 2022 and was recorded on May 24, 2022. The property has 7,950 square feet of built space and 2,090 square feet of additional air rights for a total buildable of 10,050 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,383 and the price per buildable square foot is $1,094 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 August 1, 2014, for $11 million. The signatory for Corigin Real Estate Group was Greg Gleason. The signatory for Harkham Ventures was Aron Harkham. This is the second property Harkham has purchased from Corigin. In March Harkham paid $10.5 million for 206 Spring Street.
Prior sales and revenue
Prior to this transaction, Pincusco has records that the buyer Harkham Ventures purchased two properties in two transactions for a total of $37.3 million and has no record it sold any properties over the past 24 months.
The seller Corigin Real Estate Group had not purchased any other properties and sold two properties in two transactions for a total of $41.1 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Adam Savell, head officer and Fernando Brens, site manager. The business entities are Corigin Management and 21 Crosby Llc.
The property
The 133 Grand Street parcel has frontage of 25 feet and is 80 feet deep with a total lot size of 2,010 square feet. The lot is irregular. The zoning is M1-5B which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the SoHo-Cast Iron Historic District Extension. The city-designated market value for the property in 2022 is $2.4 million.The most recent loan totaled $5.5 million and was provided by BankUnited on October 8, 2019.
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 $100 in OATH penalties in the last year.
Development
For the tax lot building, it received its initial certificate of occupancy on March 10, 2017. 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 Little Italy, the bulk, or 31 percent of the 4.4 million square feet of commercial built space are office buildings, with residential walkup buildings next occupying 24 percent of the space. In sales, Little Italy has had very little sales volume relative to other neighborhoods with $174.7 million in sales volume in the last two years. For development, Little Italy has had very little major development activity relative to other neighborhoods.It had 82,921 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of five of the 13 commercial properties representing 119,499 square feet of the 443,531 square feet. The largest owner is Cape Advisors, followed by Boquen Realty and then RWN Management. There are no active new building construction projects on this tax block.
The majority, or 66 percent of the 443,531 square feet of built space are office buildings, with hotel buildings next occupying 27 percent of the space.
The seller
The PincusCo database currently indicates that Corigin Real Estate Group owned at least three commercial properties with 172,760 square feet and a city-determined market value of $32.3 million. (Market value is typically about 50% of actual value.) The portfolio has $65.5 million in debt, with top three lenders as M&T Bank, Signature Bank, and BankUnited respectively. Within the portfolio, the bulk, or 91 percent of the 172,760 square feet of built space are hotel properties, with residential walkup properties next occupying 5 percent of the space. They are all located in Manhattan.
The PincusCo database currently indicates that Corigin owned at least one commercial property with 5,625 square feet and a city-determined market value of $2.4 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single residential walkup property. It is located in Brooklyn.
Surrounding
Within a 400-foot radius of 133 Grand Street, Pincusco identified 14 commercial real estate items of interests occurred over the past 24 months.
Of those 14 items, three were for major renovation including a certificate of occupancy change. They were one permit with a total initial cost of $692,621 and two initial temporary certificate of occupancy issuances for projects that initially costed $995,000. The most recent of these three items was the permit on November 9, 2020 for a 123,135-square-foot B building with no residential units at 148 Lafayette Street.
Of those 14 items, three were sales above $5 million totaling $49 million. The most recent of the three was RWN Management which bought the 9,350-square-foot, eight-unit mixed-use building (S9) on 147 Grand Street for $16.1 million from Empire Capital Holdings on December 22, 2021.
Of those 14 items, eight were loans above $5 million totaling $304.9 million. The most recent of the eight was Zada Realty which borrowed $7 million from Dime Community Bank secured by the 12,283-square-foot, 15-unit rental (C7) on 31 Crosby Street on April 20, 2022.
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