Hartz Mountain Industries pays $4.8M for dev site in SoHo

Hartz Mountain Industries through the entity 391 Canal Street Soho LLC paid $4.8 million to Tomer Hillel through the entity H Mazal LLC for the retail building (K1) at 391 Canal Street in SoHo, Manhattan. The expected use is ground up development.
The deal closed on June 12, 2026 and was recorded on June 17, 2026. The property has 2,208 square feet of built space and 13,979 square feet of additional air rights for a total buildable of 16,180 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $2,196 and the price per buildable square foot is $299 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 September 10, 2024, for $3 million. The signatory for Tomer Hillel was Tomer Hillel. The signatory for Hartz Mountain Industries was Phillip R. Patton . The contract date was May 14, 2026.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has no record that the buyer Hartz Mountain Industries had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Tomer Hillel had not purchased any other properties and had not sold any properties over the same time period. The 2,208-square-foot property generated revenue of $267,654 or $121 per square foot, according to the most recent income and expense figures.

The property

The retail building in SoHo has 2,208 square feet of built space and 13,979 square feet of additional air rights for a total buildable of 16,180 square feet according to a PincusCo analysis of city data. The parcel has frontage of 21 feet and is 77 feet deep with a total lot size of 1,618 square feet. The lot is irregular. The zoning is M1-5/R10 which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.2 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 $150 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 $1 million on this tax lot.

The neighborhood

In SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has the 7th highest sale turnover among other neighborhoods in the city with $1.8 billion in sales volume in the last two years. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 13 commercial properties representing 268,286 square feet of the 294,604 square feet. The largest owner is Hartz Mountain Industries, followed by Thor Equities and then Kano Real Estate Investments.
On the tax block, there was one new building construction project filed totaling 326,974 square feet. It is a 326,974 square-foot business (B) building submitted by Taconic Partners and filed by Colleen Wenke with plans filed June 14, 2022 and it has not been permitted yet.

The majority, or 83 percent of the 294,604 square feet of built space are hotel buildings, with retail buildings next occupying 7 percent of the space.

The buyer

The PincusCo database currently indicates that Hartz Mountain Industries owned at least six commercial properties with three residential units in New York City with 722,189 square feet and a PincusCo-determined asset value of $729.2 million. The portfolio has $230 million in debt, borrowed from JPMorgan Chase . Within the portfolio, the bulk, or 44 percent of the 722,189 square feet of built space are hotel properties, with office properties next occupying 41 percent of the space.

Direct link to Acris document. link