Jackson Group pays $6.5M for two retail condos in SoHo

UPDATED 5:55 p.m., January 28, 2025: The Chehebar family’s Jackson Group through the entity 597 Broadway Retail LLC paid $6.5 million to the entity 597 Broadway Development Corp. for two retail condominium units at 597 Broadway in SoHo, Manhattan. The expected use is cash flowing.
The deal closed on August 26, 2024 and was recorded on August 28, 2024. The two properties have 8,648 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $754 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 Jackson Group was Gabriel Chehebar. The contract date was May 14, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Jackson Group purchased seven properties in six transactions for a total of $56.6 million and sold four properties in four transactions for a total of $28.1 million over the past 24 months.

The property

The retail condos in SoHo has 8,648 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 5,262 square feet.

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 two buildings received a initial certificate of occupancy in the last ten years. 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 SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has 1.9 times the average sales volume among other neighborhoods with $514 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 218,716 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block of 597 Broadway, PincusCo has identified the owners of three of the six commercial properties representing 191,552 square feet of the 346,224 square feet. The largest owner is Pater M. Brant, followed by Rafael Ortiz and then Aryeh Realty.
There are no active new building construction projects on this tax block.

The majority, or 40 percent of the 346,224 square feet of built space are retail buildings, with office buildings next occupying 25 percent of the space.

The buyer

The PincusCo database currently indicates that Jackson Group owned at least nine commercial properties with 33 residential units in New York City with 249,206 square feet and a city-determined market value of $67.5 million. (Market value is typically about 50% of actual value.) The portfolio has $27.8 million in debt, borrowed from Signature Bank and Safra National Bank. Within the portfolio, the bulk, or 42 percent of the 249,206 square feet of built space are retail properties, with mixed-use properties next occupying 41 percent of the space. The bulk, or 49 percent of the built space, is in Brooklyn, with Queens next at 32 percent of the space.

Updated: For privacy, an individual name was removed from this post.

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