IAC pays $80M for land under office in Chelsea

IAC through the entity Htrf Ventures, LLC paid $80 million to the Resnioff family through the entity CCMR Responsive LLC for the land under the office building (O3) at 555 West 18th Street in Chelsea, Manhattan.
The deal closed on April 4, 2023 and was recorded on April 17, 2023. The property has 196,500 square feet of built space and 24,401 square feet of additional air rights for a total buildable of 220,930 square feet according to a PincusCo analysis of city data, however this sale was only for the land under the buildings. The sale price per built square foot is $407 and the price per buildable square foot is $362 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 Resnioff family was Barry J. Haskell. The signatory for IAC was Christopher Halpin. Georgetown Companies leased the land in 2004, and subleased it to IAC at that time, and developed the IAC building. The brokers were a Marcus & Millichap team led by Eric Anton and Steven Siegel, The Real Deal reported.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer IAC had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Resnioff family had not purchased any other properties and had not sold any properties over the same time period. The two properties with a total of 196,500 square feet of built space generated revenue of $14.3 million per year or $73 per square foot. The sale price per square foot was $407.

The property

The office building in Chelsea has 196,500 square feet of built space and 24,401 square feet of additional air rights for a total buildable of 220,930 square feet according to a PincusCo analysis of city data. The parcel has frontage of 141 feet and is 149 feet deep with a total lot size of 28,850 square feet. The lot is irregular. The zoning is C6-3 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 7.52 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $71.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation and $2,000 in OATH penalties 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 4th highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Chelsea has 2.1 times the average amount of major developments relative to other neighborhoods and is the 17th highest in Manhattan. It had 2.1 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 the tax block of 555 West 18th Street, PincusCo has identified the owners of one of the four commercial properties representing zero square feet of the 213,300 square feet. The identified owner is Related Companies.
On the tax block, there was one new building construction project filed totaling 348,002 square feet. It is a 181-unit, 348,002 square-foot residential (R-2) building submitted by Related Companies and filed by Jordan Sasson with plans filed September 29, 2016 and permitted June 12, 2018.

The majority, or 92 percent of the 213,300 square feet of built space are office buildings, with specialty buildings next occupying 8 percent of the space.

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