Jackson Group, Tawil pay $63.5M for 9 Times Square in Garment District

The Chehebar family’s Jackson Group and Victor Tawil through the entity 9 Times Square Acquisitions, LLC (and others) paid $63.5 million to American Strategic Investment through the entity Arc Nyc570seventh, LLC for the office and retail building 9 Times Square, at 200 West 41st Street in Garment District, Manhattan. The building has an alternate address of 570 Seventh Avenue. The building is divided into three commercial condominiums, one for the retail, another for the office and third for the signage.
The deal closed on December 18, 2024 and was recorded on December 30, 2024. The three tax lots have 150,338 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $422 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 American Strategic Investment was Michael Anderson. The signatory for Jackson Group and Victor Tawil was Gabriel Chehebar. The contract date was August 1, 2024. Jackson Group through 9 Times Square Acquisitions LLC owns 31.83%; Jackson Group through 9 Times Square Investor Holdco LLC owns 52.69%; Victor Tawil through Ocean M Properties LLC owns 9.64% and an investor in care of Kassin Sabbagh Realty’s offices, Rose 9TSQ LLC owns 5.84%.
The buyers financed the purchase by assuming $35 million in debt provided by Capital One. The sellers had borrowed $55 million secured by the property from Capital One.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Jackson Group purchased nine properties in seven transactions for a total of $84.2 million and sold five properties in five transactions for a total of $33.5 million over the past 24 months.
The seller American Strategic Investment had not purchased any other properties and sold one property in one transaction for a total of $4.5 million over the same time period.

The property

The office condo in Garment District has 150,338 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 137,127 square feet. The city-designated market value for the property in 2022 is $34.5 million.

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

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 Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has 3.7 times the average sales volume among other neighborhoods with $925.7 million in sales volume in the last two years and is the 10th highest in Manhattan. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 8.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space. There were four pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 200 West 41st Street, PincusCo has identified the owners of five of the nine commercial properties representing 671,736 square feet of the 755,385 square feet. The largest owner is Research Foundation Of The City University Of New York, followed by Benderson Development and then Corten Real Estate Partners.
On the tax block, there was one new building construction project filed totaling 118,143 square feet. It is a 167-unit, 118,143 square-foot hotel/dormitory/shelter (R-1) building submitted by Soho Properties and filed by Sharif El-Gamal with plans filed March 24, 2015 and permitted January 17, 2019.

The majority, or 53 percent of the 755,385 square feet of built space are office buildings, with hotel buildings next occupying 41 percent of the space.

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.
The PincusCo database currently indicates that Victor Tawil owned at least one commercial property with four residential units in New York City with 4,800 square feet and a city-determined market value of $1 million. (Market value is typically about 50% of actual value.) The portfolio has $21.8 million in debt, borrowed from New York Community Bank. The portfolio consists of at least a single mixed-use property. It is located in Brooklyn.

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