Hirshmark Capital buys $5.4M note on Chelsea retail

Hirshmark Capital through the entity 56 Ninth Funding LLC bought a note with an original principal of $5.4 million from BankUnited secured by Gregory Sherry and Marc Sherry’s retail building (K2) at 56 Ninth Avenue in Chelsea, Manhattan.
The deal closed on June 20, 2022 and was recorded on June 27, 2023. The prior lender was BankUnited which held debt that had an original loan amount of $5.4 million.

The property has 3,372 square feet of built space and 7,153 square feet of additional air rights for a total buildable of 10,528 square feet according to a PincusCo analysis of city data.
The signatory for Gregory Sherry and Marc Sherry was Gregory Sherry and Marc Sherry.

Prior sales and revenue

The 3,372-square-foot property generated revenue of $488,841 or $145 per square foot, according to the most recent income and expense figures.

The property

The retail building in Chelsea has 3,372 square feet of built space and 7,153 square feet of additional air rights for a total buildable of 10,528 square feet according to a PincusCo analysis of city data. The parcel has frontage of 17 feet and is 100 feet deep with a total lot size of 1,749 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The property is in the Gansevoort Market Historic District. The city-designated market value for the property in 2022 is $3.1 million. The most recent loan totaled $5.4 million and was provided by BankUnited on December 23, 2019.

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 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 $1 million on this tax lot.

The neighborhood

In Chelsea, The bulk, or 36 percent of the 52.4 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 5th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Chelsea has 2 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Manhattan. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 13 of the 26 commercial properties representing 196,580 square feet of the 322,590 square feet. The largest owner is Tavros Holdings, followed by Superior Management and then Sky Management.
There are no active new building construction projects on this tax block.

The majority, or 50 percent of the 322,590 square feet of built space are walkup buildings, with elevator buildings next occupying 23 percent of the space.

The borrower

The PincusCo database currently indicates that Marc Sherry owned at least one commercial property in New York City with 3,372 square feet and a city-determined market value of $3.1 million. (Market value is typically about 50% of actual value.) The portfolio has $5.4 million in debt, borrowed from BankUnited. The portfolio consists of at least a single retail property. It is located in Manhattan.

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