Jackson Group pays $9M to Churchill Real Estate Holdings for retail condo in Lenox Hill

Jackson Group through the entity 809 Madison Retail LLC paid $9 million to Churchill Real Estate Holdings through the entity 809 Madison Owner LLC for the property at 809 Madison Avenue in Lenox Hill, Manhattan. The expected use is cash flowing.
The deal closed on November 7, 2024 and was recorded on November 14, 2024. The property has 2,140 square feet of built space on the ground floor and 1,780 on the lower level, according to a PincusCo analysis of city data. The blended sale price per built square foot is $2,295 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 Churchill Real Estate Holdings was Sorabh Maheshwari. The signatory for Jackson Group was Gabriel Chehebar. The contract date was October 31, 2024. Churchill Real Estate Holdings as landlord signed a ground lease in May 2024 with tenant Jackson Group for the retail in this building, then Churchill divided the building into three commercial condominium units, two for retail and one for residential. Upon the sale of this unit to the Jackson Group, the ground lease was terminated.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Jackson Group purchased seven properties in five transactions for a total of $52.2 million and sold five properties in five transactions for a total of $33.5 million over the past 24 months.
The seller Churchill Real Estate Holdings had not purchased any other properties and sold six properties in six transactions for a total of $69.7 million over the same time period.

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 not received any significant violations 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 block

On this tax block, PincusCo has identified the owners of 11 of the 30 commercial properties representing 183,552 square feet of the 371,929 square feet. The largest owner is Jackson Group, followed by Black Spruce Management and then Tatiana Botton.
There are no active new building construction projects on this tax block.

The majority, or 45 percent of the 371,929 square feet of built space are elevator buildings, with office buildings next occupying 17 percent of the space.

The seller

The PincusCo database currently indicates that Churchill Real Estate Holdings owned at least seven commercial properties with 107 residential units in New York City with 144,890 square feet and a city-determined market value of $51 million. (Market value is typically about 50% of actual value.) The portfolio has $104.9 million in debt, with top three lenders as Square Mile Capital Management, Silver Point Capital, and Calmwater Capital respectively. Within the portfolio, the bulk, or 45 percent of the 144,890 square feet of built space are elevator properties, with walkup properties next occupying 34 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Jackson Group owned at least eight commercial properties with 33 residential units in New York City with 243,506 square feet and a city-determined market value of $66.1 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 243,506 square feet of built space are mixed-use properties, with retail properties next occupying 41 percent of the space. The bulk, or 47 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.

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