Jack Elo pays $34.7M to Robert Posner for office in Midtown West

Jack Elo through the entity Minako Realty LLC paid $34.7 million to Robert A. Posner through the entity 6 West 48th LLC for the office building (O6) at 6 West 48th Street in Midtown West, Manhattan.
The deal closed on November 6, 2023 and was recorded on November 8, 2023. The property has 60,500 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $573 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 Robert A. Posner was Robert A. Posner. The signatory for Jack Elo was Jack Elo. The contract date was July 8, 2023. The New York Times mentioned the property (with the incorrect address 6 West 58th Street).
To finance the deal, Jack Elo through the entity Fortune JD LLC as borrower signed an acquisition loan with lender Hirshmark Capital, arranged by Bert R. Dweck, through the entity 6w48 Street Funding LLC valued at $21.5 million for two office properties including the office building (O6) at 6 West 48th Street in Midtown West, Manhattan and office building (O5) at and on 3rd Avenue in Gowanus, Brooklyn.
Jack Elo is engaged in a lawsuit that is stalling Extell Development’s hotel project on the block.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Jack Elo had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Robert A. Posner had not purchased any other properties and had not sold any properties over the same time period.

The property

The office building in Midtown West has 60,500 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,019 square feet. The zoning is C6-4.5 which allows for up to 12 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $23.8 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 $1,535 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on May 29, 2013. 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 Midtown West, The majority, or 75 percent of the 75.9 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 6th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 21.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 29 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 18 of the 35 commercial properties representing 1,061,502 square feet of the 1,866,158 square feet. The largest owner is United Overseas Bank, followed by Sunkar Satvaldiyev and then Stawski Partners.
On the tax block, there were two new building construction projects totaling 227,777 square feet. The largest is a 534-unit, 168,897 square-foot hotel/dormitory/shelter (R-1) building submitted by Extell Development and filed by David Rothstein with plans filed November 20, 2020 and permitted December 28, 2022. The second largest is a 58,880 square-foot mercantile (M) building submitted by Michael Mcmenamin with plans filed June 1, 2016 and it has not been permitted yet.

The majority, or 87 percent of the 1.9 million square feet of built space are office buildings, with retail buildings next occupying 10 percent of the space.

The buyer

The PincusCo database currently indicates that Jack Elo owned at least one commercial property in New York City with 120,790 square feet and a city-determined market value of $46.6 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

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