Jeff Klein, Ohana Real Estate pay $62M to BD Hotels for hotel in West Village

Jeff Klein of JK Hotel Group and Ohana Real Estate Investors through the entity NYC Club Owner LLC paid $62 million to BD Hotels through the entity Jane St. Hospitality, LLC for the hotel building (H3) at 113 Jane Street in West Village, Manhattan.
The buyer group plans to convert the hotel into a private club. The Commercial Observer reported on the sale yesterday, and New York Magazine reported on the expected sale in February 2022.
The deal closed on December 15, 2022 and was recorded on December 27, 2022. The property has 43,618 square feet of built space and 9,428 square feet of additional air rights for a total buildable of 53,048 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,421 and the price per buildable square foot is $1,168 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 January 10, 2008, for $27 million. The signatory for BD Hotels was Richard Born. The signatory for Ohana Real Estate Investors and Jeff Klein was John Ginochio, a partner at Ohana. The contract date was December 27, 2021.
To finance the purchase, Ohana Real Estate Investors through the entity NYC Club Owner LLC as borrower signed an acquisition loan with lender Kennedy Wilson through the entity KW San Vicente Bungalows And Hotel 850, LLC valued at $65.8 million for the hotel building (H3) at 113 Jane Street in West Village, Manhattan.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Ohana Real Estate Investors purchased three properties in one transactions for a total of $94 million and has no record it sold any properties over the past 24 months.
The seller BD Hotels had not purchased any other properties and sold or leased two properties in two transactions for a total of $129.5 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Sean MacPherson, head officer and Richard Born, officer. The business entity is Jane Street Hospitality Llc.

The property

The 113 Jane Street parcel has frontage of 135 feet and is 66 feet deep with a total lot size of 8,812 square feet. The lot is irregular. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $13.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $1,775 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project for a 199-unit, 48,200 square-foot R-1 building. The project was developed by Richard Born with plans filed March 29, 2022 and it has not been permitted yet.

The neighborhood

In West Village, the bulk, or 32 percent of the 10.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 27 percent of the space. In sales, West Village has 3.8 times the average sales volume among other neighborhoods with $1.3 billion in sales volume in the last two years and is the 10th highest in Manhattan. For development, West Village has had very little major development activity relative to other neighborhoods.It had 418,001 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the six commercial properties representing 117,413 square feet of the 194,989 square feet. The two identified owners are Rockrose Development and Matthew Chirichella.
There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 194,989 square feet of built space are elevator buildings, with hotel buildings next occupying 22 percent of the space.

The seller

The PincusCo database currently indicates that BD Hotels owned at least 17 commercial properties in New York City with 1,169,061 square feet and a city-determined market value of $402.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 99 percent of the 1,169,061 square feet of built space are hotel properties, with walkup properties next occupying 1 percent of the space. They are all located in Manhattan.

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