Heejung Kang, Kyungho Kang pay $3.6M for mixed-use in FiDi

Heejung Kang and Kyungho Kang through the entity 24 Beaver LLC paid $3.6 million to Robert Goldberg through the entity 24 Beaver Street LLC for the midblock mixed-use building at 24 Beaver Street in Financial District, Manhattan.
The deal closed on March 25, 2022 and was recorded on April 5, 2022.

The property has 5,046 square feet of built space and 7,560 square feet of additional air rights for a total buildable of 12,600 square feet according to PincusCo analysis of city data. The sale price per built square foot is $723 and the price per buildable square foot is $289 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 Robert Goldberg was Robert Goldberg. The signatory for Heejung Kang and Kyungho Kang was Heejung Kang and Kyungho Kang.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Heejung Kang had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Robert Goldberg had not purchased any other properties and had not sold any properties over the same time period. The 5,046-square-foot property generated revenue of $444,717 or $88 per square foot, according to the most recent income and expense figures.

The property

The 24 Beaver Street parcel has frontage of 21 feet and is 59 feet deep with a total lot size of 1,260 square feet. The lot is irregular. The zoning is C5-5 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 $2 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has not received any significant violations 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 Financial District, the majority, or 71 percent of the 85.8 million square feet of commercial built space are office buildings, with residential elevator buildings next occupying 18 percent of the space. In sales, Financial District has the 5th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Financial District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 1.3 million 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 two of the 13 commercial properties representing 1,891,190 square feet of the 2,047,356 square feet. The two identified owners are Metropolitan Transportation Authority and Broad Street Development. There is one active new building construction project totaling 56,988 square feet. It is a 130-unit, 56,988-square-foot R-1 building developed by Andy Mak with plans filed August 9, 2013 and permitted May 9, 2016.

The majority, or 92 percent of the 2.1 million square feet of built space are office buildings, with hotel buildings next occupying 3 percent of the space.

Surrounding

Within a 400-foot radius of 24 Beaver Street, PincusCo identified eight commercial real estate items of interests occurred over the past 24 months.
Of those eight items, one was for major renovation including a certificate of occupancy change. It was a permit issued on January 12, 2021 for the $992,000 renovation of 974,958-square-foot office (B) building with no residential units at 60 Broad Street.
Of those eight items, two were sales above $5 million totaling $80.1 million. The most recent of the two was CIT Bank which acquired the 143,731-square-foot hotel (H2) on 8 Stone Street for a value of $74.3 million from Rockwood Capital on June 8, 2021.
Of those eight items, five were loans above $5 million totaling $554.1 million. The most recent of the five was Chetrit Group which borrowed $290 million from Starwood Mortgage Capital and Bank of Montreal secured by the 860,889-square-foot, 49-unit office building (O4) on 26 Broadway on February 16, 2022.

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