Hiu Ian Cheng through the entity 47 Broadway NY LLC paid $12.2 million to the Riese Organization through the entity 47 Bway Acquisition Corp. for the corner mixed-use building at 47 Broadway in the Financial District, Manhattan.
The deal closed on March 23, 2022 and was recorded on April 8, 2022.
The property has 27,640 square feet of built space and 23,561 square feet of additional air rights for a total buildable of 51,220 square feet according to PincusCo analysis of city data. The sale price per built square foot is $443 and the price per buildable square foot is $239 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 March 28, 2014, for $6.7 million. The signatory for Riese Organization, a major fast-food franchisee in New York City, was Ann Martinez. The signatory for Hiu Ian Cheng was Hiu Ian Cheng. Ann Martinez is with the Riese Organization.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Hiu Ian Cheng purchased one property in one transaction for a total of $6.6 million and sold one property in one transaction for a total of $2.1 million over the past 24 months.
The seller Riese Organization had not purchased any other properties and sold one properties in one transactions for a total of $45 million over the same time period.
The 47 Broadway parcel has frontage of 26 feet and is 191 feet deep with a total lot size of 5,122 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 $5 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 received four DOB violations in the last year.
For the tax lot building, it received an initial alteration certificate of occupancy on September 15, 2015. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.
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.
On this tax block, PincusCo has identified the owners of three of the six commercial properties representing 1,072,983 square feet of the 1,486,188 square feet. The largest owner is Cammeby’s International Group, followed by Harbor Group International and then Jeffries Morris, Inc. There are no active new building construction projects on this tax block.
The majority, or 97 percent of the 1.5 million square feet of built space are office buildings, with mixed-use buildings next occupying 3 percent of the space.
The PincusCo database currently indicates that Hiu Ian Cheng owned at least three commercial properties with 83,968 square feet and a city-determined market value of $20.4 million. (Market value is typically about 50% of actual value.) The portfolio has $26.6 million in debt, borrowed from Bank of Hope and Shanghai Commercial Bank. Within the portfolio, the bulk, or 82 percent of the 83,968 square feet of built space are hotel properties, with mixed-use properties next occupying 18 percent of the space. The bulk, or 82 percent of the built space, is in Queens, with Manhattan next at 18 percent of the space.
Within a 400-foot radius of 47 Broadway, PincusCo identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, one was for major renovation including a certificate of occupancy change. It was a permit issued on July 21, 2021 for the $17.7 million renovation of 72,258-square-foot R-2 building with 566 residential units at 60 Broadway.
Of those six items, five were loans above $5 million totaling $364.7 million. The most recent of the five was Harbor Group International which borrowed $8.4 million from AIG secured by the 309,381-square-foot, 60-unit office building (O4) on 55 Broadway on October 27, 2021.
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