Hotelier Jin Sup An pays $5M for mixed-use in Midtown West

Hotel owner Jin Sup An through the entity Soho New York Lodging, LLC paid $5 million to Michael Kontokosta through the entity Kace Realty 43, LLC for the six-unit mixed-use building (S9) at 43 West 54th Street in Midtown West, Manhattan.
The deal closed on February 24, 2023 and was recorded on March 3, 2023. The property has 5,802 square feet of built space and 7,456 square feet of additional air rights for a total buildable of 13,256 square feet according to PincusCo analysis of city data. The sale price per built square foot is $861 and the price per buildable square foot is $377 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 Michael Kontokosta was Michael Kontokosta. The signatory for Jin Sup An was Jin Sup An. Michael Kontokosta’s family owns the Kontokosta Winery in Greenport on the North Fork of Long Island. Jin Sup An bought the GEM Hotel for $15 million in 2015. The Kontokosta family, through the signatory Emanuel Kontokosta, acquired the property in 1971 as part of a four-parcel portfolio.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Jin Sup An had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Michael Kontokosta had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Michael Kontokosta, head officer and Constantine Kontokosta, officer. The business entity is Kace Realty 43 W Llc. The 5,802-square-foot property generated revenue of $255,056 or $44 per square foot, according to the most recent income and expense figures.

The property

The 43 West 54th Street parcel has frontage of 16 feet and is 100 feet deep with a total lot size of 1,657 square feet. The city-designated market value for the property in 2022 is $6.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. 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 Midtown West, the majority, or 75 percent of the 76 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.4 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 15.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 32 commercial properties representing 804,761 square feet of the 1,505,090 square feet. The largest owner is Sol Goldman Investments, followed by Skyline Developers and then Samir al-Hadidi.
On the tax block, there were two new building construction projects totaling 459,510 square feet. The largest is a 96-unit, 432,306-square-foot R-2 building developed by Leonard Wilf with plans filed May 8, 2020 and permitted February 8, 2023. The second largest is a four-unit, 27,204-square-foot R-3 building developed by Lawrence Boudreau with plans filed April 7, 2014 and it has not been permitted yet.

The majority, or 49 percent of the 1.5 million square feet of built space are hotel buildings, with office buildings next occupying 48 percent of the space.

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