Hong Bae Park pays $8.2M to Delshah Capital for retail in Flatiron District

Hong Bae Park through the entity Rich 24 LLC paid $8.2 million to Delshah Capital through the entity Griffon Monkey, LLC for the retail building (O5) at 17 West 24th Street in Flatiron District, Manhattan.
The deal closed on December 28, 2023 and was recorded on January 4, 2024. The property has 7,900 square feet of built space and 17,763 square feet of additional air rights for a total buildable of 25,670 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,031 and the price per buildable square foot is $317 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 October 2, 2019, for $9.2 million. The signatory for Delshah Capital was Michael Shah. The signatory for Hong Bae Park was Hong Bae Park. The contract date was September 27, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Hong Bae Park had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Delshah Capital purchased two properties in two transactions for a total of $74.5 million and sold 38 properties in 11 transactions for a total of $100.3 million over the same time period.

The property

The retail building in Flatiron District has 7,900 square feet of built space and 17,763 square feet of additional air rights for a total buildable of 25,670 square feet according to a PincusCo analysis of city data. The parcel has frontage of 26 feet and is 98 feet deep with a total lot size of 2,567 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $1.4 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 $2,730 in OATH penalties in the last year.

Development

On the lot, there was one new building construction project for a 68-unit, 25,668 square-foot R-1 building. The project was submitted by Hag Lee with plans filed February 13, 2014 and it has not been permitted yet.

The neighborhood

In Flatiron District, The majority, or 71 percent of the 23.2 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has near average sales volume among other neighborhoods with $274.7 million in sales volume in the last two years and is the 31st highest in Manhattan. For development, Flatiron District has 2.5 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Manhattan. It had 2.5 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 10 of the 20 commercial properties representing 804,635 square feet of the 1,382,183 square feet. The largest owner is Wai Yee Yung, followed by Tonya Webb and then Savanna.
On the tax block, there was one new building construction project filed totaling 25,668 square feet. It is a 68-unit, 25,668 square-foot hotel/dormitory/shelter (R-1) building submitted by Hag Lee with plans filed February 13, 2014 and it has not been permitted yet.

The majority, or 68 percent of the 1.4 million square feet of built space are office buildings, with elevator buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Delshah Capital owned at least 40 commercial properties with 592 residential units in New York City with 716,907 square feet and a city-determined market value of $158.7 million. (Market value is typically about 50% of actual value.) The portfolio has $511.7 million in debt, with top three lenders as Arbor Realty Trust, Apollo Global Management, and Signature Bank respectively. Within the portfolio, the bulk, or 40 percent of the 716,907 square feet of built space are walkup properties, with elevator properties next occupying 37 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Brooklyn next at 39 percent of the space.

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