Jack Shainman Gallery pays $18.2M to Elad for retail in Civic Center

Jack Shainman Gallery through the entity J & C Future LLC paid $18.2 million to Elad Group through the entity Civic Center Community Group Broadway LLC for a retail space composes of four condominium units at 46 Lafayette Street in Civic Center, Manhattan, property at 108 Leonard Street in Civic Center, Manhattan, and property at 108 Leonard Street in Civic Center, Manhattan. The residential and commercial condo building Elad Group and Peebles Corporation developed that also uses the address 108 Leonard Street, and is also known as the Clock Tower Building.

This sale is another example of a retailer buying its space in the city, with other recent examples being Kering, Prada and Dyson.

The deal closed on January 11, 2024 and was recorded on January 23, 2024. The four properties have 20,277 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $897 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 Elad Group and Peebles Corporation was Orly Daniell. The signatory for Jack Shainman Gallery was Jack Shainman. The contract date was April 18, 2022. Jack Shainman Gallery is located in Chelsea. Square feet of the condo units is on page 50.

Court records from 2016 say that Elad Group owned 65 percent of the 108 Leonard Street project while the Peebles Corporation owned 35 percent.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Jack Shainman Gallery had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Elad Group purchased three properties in one transactions for a total of $61 million and had not sold any properties over the same time period.

The property

The retail condo in Civic Center has 20,277 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 15,930 square feet. The city-designated market value for the property in 2022 is $6.4 million. The most recent loan totaled $88.9 million and was provided by G4 Capital Partners on May 23, 2023.

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 not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the four buildings received a initial certificate of occupancy in the last ten years. On these lots, there is one active major alteration construction project for a 167-unit, 368,180 square-foot R-2 building. The project was submitted by Yoel Shargian with plans filed May 22, 2014 and permitted May 18, 2017. On the tax lot, the most recent condominium plan was filed by CIVIC CENTER COMMUNITY GROUP BROADWAY LLC to create 152 residential units in a building at 46 Lafayette Street in Civic Center, Manhattan, called 108 Leonard Condominiumthat has a $637.7 million sellout, according to an November 14, 2016 submission to the New York State Attorney General. The principal of the sponsor, CIVIC CENTER COMMUNITY GROUP BROADWAY LLC, was Orly Daniell.

The block

On the tax block of 108 Leonard Street, PincusCo has identified the owners of two of the two commercial properties representing 559,336 square feet of the 559,336 square feet. The two identified owners are Zucker Organization and Anthony Mota.
There are no active new building construction projects on this tax block.

All properties are elevator.

The seller

The PincusCo database currently indicates that Elad Group owned at least three commercial properties in New York City with 4,320 square feet and a city-determined market value of $5.9 million. (Market value is typically about 50% of actual value.) The portfolio has $491.8 million in debt, with top three lenders as Lionheart Strategic Management, Valley National Bank, and G4 Capital Partners respectively. Within the portfolio, the bulk, or 100 percent of the 4,320 square feet of built space are walkup properties, with development properties next occupying 0 percent of the space. They are all located in Manhattan.

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