Japanese medical firm pays $46M to RFR Holding for retail in SoHo

The Japanese medical firm Arkray Inc. through the entity Arkray Marketing, Inc. paid $46 million to Aby Rosen’s RFR Holding through the entity 102 Greene LLC for the retail building (K4) at 102 Greene Street in SoHo, Manhattan. The expected use is cash flowing.
The deal closed on November 8, 2024 and was recorded on November 15, 2024. The property has 10,139 square feet of built space and 2,350 square feet of additional air rights for a total buildable of 12,500 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $4,536 and the price per buildable square foot is $3,680 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 bought the property on October 20, 2022, for $31.5 million. The signatory for RFR Holding was Richard Froom. The signatory for Arkray Inc. was Enrico Granata. The contract date was October 7, 2024.

SL Green Realty bought the building from BLDG Management for $32.25 million in October 2014, then in 2017 SL Green sold a 90% stake that valued the entire property at $43.5 million, to TA Realty.  TA Realty sold it to RFR Holding in October 2022 for $31.5 million.  The buyer entity is in care of Rialto Management, an asset management company. Enrico Granata is a partner with King & Spalding, a law firm. Arkray Inc. in the United States is headquartered in Minneapolis and led by John McCrea.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Arkray Inc. had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller RFR Holding purchased three properties in three transactions for a total of $92.3 million and sold two properties in two transactions for a total of $593.8 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Tom Lavin, head officer and Deloy Stoll, agent. The business entities are RFR Realty Llc and 102 Greene Llc. The 10,139-square-foot property generated revenue of $1.4 million or $137 per square foot, according to the most recent income and expense figures.

The property

The retail building in SoHo has 10,139 square feet of built space and 2,350 square feet of additional air rights for a total buildable of 12,500 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is M1-5/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $7.9 million. The most recent loan totaled $22 million and was provided by Valley National Bank on November 2, 2022.

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 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 $491.8 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 271,299 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 13 commercial properties representing 206,865 square feet of the 316,967 square feet. The largest owner is Sl Green Realty, followed by RFR Holding and then Carl Stefan Erling Persson.
There are no active new building construction projects on this tax block.

The majority, or 66 percent of the 316,967 square feet of built space are office buildings, with mixed-use buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that RFR Holding owned at least 19 commercial properties in New York City with 2,859,746 square feet and a city-determined market value of $1.1 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 87 percent of the 2,859,746 square feet of built space are office properties, with hotel properties next occupying 8 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Brooklyn next at 4 percent of the space.

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