Japan-based firm pays $16M for walkup in Hell’s Kitchen, Sanyo Chemical owns next door

The Japan-based Shinko Co. Ltd through the entity Shinko Co., Ltd. paid $16 million to the entity 437 West 46sg LLC for the 20-unit residential walkup building (C4) at 437 West 46th Street in Hell’s Kitchen, Manhattan.
Next door, the Japan-based Sanyo Chemical paid $13 million for 439 West 46th Street in March 2022. In both cases, a company affiliated with Relo Redac first acquired the building for a much lower transfer price, then sold it a few years later.
The deal closed on December 19, 2023 and was recorded on January 8, 2024. The property has 9,390 square feet of built space and 6,530 square feet of additional air rights for a total buildable of 15,916 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,703 and the price per buildable square foot is $1,005 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 seller, in care of Relo Redac, bought the property on July 18, 2022, for $7 million. The signatory for 437 West 46sg LLC was Michael A. Mulia. The signatory for Shinko Co. Ltd was Devin Yasada. The contract date was November 1, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Shinko Co. Ltd had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Michael Mintz, head officer and Zbigniew Bachurek, site manager. The business entities are Md Squared Property Group and 437 West 46sg Llc. The 9,390-square-foot property generated revenue of $601,064 or $64 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 20 residential units in Hell’s Kitchen has 9,390 square feet of built space and 6,530 square feet of additional air rights for a total buildable of 15,916 square feet according to a PincusCo analysis of city data. The parcel has frontage of 26 feet and is 100 feet deep with a total lot size of 2,644 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.7 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 $50 in OATH penalties 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 21 of the 31 commercial properties representing 280,537 square feet of the 361,355 square feet. The largest owner is Zada Realty, followed by Relo Redac Inc. and then Brett Haber.
There are no active new building construction projects on this tax block.

The majority, or 65 percent of the 361,355 square feet of built space are walkup buildings, with elevator buildings next occupying 27 percent of the space.

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