InSite Property Group pays $25.5M for likely dev site in Hell’s Kitchen

InSite Property Group paid $25.5 million in two transactions for three adjacent commercial properties in Hell’s Kitchen to the same seller, who was hidden behind an anonymous company. The transaction is likely for a development site.
In the first, InSite Property Group through the entity 609-615 W 46th St LLC paid $12.75 million to 611 West 46, LLC for the retail building (O5) at 609 West 46th Street in Hell’s Kitchen, Manhattan.
The deal closed on October 6, 2022 and was recorded on October 12, 2022. The property has 19,100 square feet of built space and 4,775 square feet of additional air rights for a total buildable of 23,875 square feet according to PincusCo analysis of city data. The sale price per built square foot is $667 and the price per buildable square foot is $534 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 November 1, 2012, for $12.5 million. The signatory for 611 West 46, LLC was an attorney, Shanice Harris. The signatory for InSite Property Group was Charles Brown.

In the second, InSite Property Group through the entity 609-615 W 46th St LLC paid $12.75 million to 613 West 46, LLC for the industrial building (G1) at 615 West 46th Street in Hell’s Kitchen, Manhattan and the industrial building (G7) at 613 West 46th Street in Hell’s Kitchen, Manhattan. The deal closed on October 6, 2022 and was recorded on October 12, 2022. The two properties have 2,500 square feet of built space and 22,501 square feet of additional air rights for a total buildable of 25,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $5,100 and the price per buildable square foot is $510 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 613 West 46, LLC was attorney Shanice Harris. The signatory for InSite Property Group was Charles Brown.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer InSite Property Group purchased five properties in five transactions for a total of $60.9 million and sold two properties in two transactions for a total of $96 million over the past 24 months.
The seller had not purchased any other properties and had not sold any properties over the same time period. The 19,100-square-foot property generated revenue of $548,743 or $29 per square foot, according to the most recent income and expense figures.

The property

The 609 West 46th Street parcel has frontage of 50 feet and is 95 feet deep with a total lot size of 4,775 square feet. The lot is irregular. The zoning is M2-4 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $2.4 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.

The neighborhood

In Hell’s Kitchen, the bulk, or 39 percent of the 41.9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Hell’s Kitchen has 3.9 times the average sales volume among other neighborhoods with $1.4 billion in sales volume in the last two years and is the 10th highest in Manhattan. For development, Hell’s Kitchen has 3.2 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Manhattan. It had 3.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of seven of the 16 commercial properties representing 110,023 square feet of the 237,628 square feet. The largest owner is Andrew Impagliazzo, followed by Semyon Ruvinsky and then Prince Lumber.
There are no active new building construction projects on this tax block.

The majority, or 48 percent of the 237,628 square feet of built space are industrial buildings, with retail buildings next occupying 35 percent of the space.

The buyer

The PincusCo database currently indicates that Insite Property Group owned at least three commercial properties in New York City with 87,404 square feet and a city-determined market value of $14.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are industrial properties. The bulk, or 64 percent of the built space, is in Queens, with Manhattan next at 33 percent of the space.

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