Jia Lin Pan pays $6.5M to Falcon Properties for office in Garment District

Jia Lin Pan through the entity KGL Real Estate LLC paid $6.5 million to Falcon Properties through the entity 150 W 36th St LLC for the office building (O5) at 150 West 36th Street in Garment District, Manhattan.
The deal closed on August 8, 2023 and was recorded on August 31, 2023. The property has 10,395 square feet of built space and 14,289 square feet of additional air rights for a total buildable of 24,680 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $625 and the price per buildable square foot is $263 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 September 17, 2021, for $8 million. The signatory for Falcon Properties was David Zaga. The signatory for Jia Lin Pan was Jia Lin Pan. The contract date was May 31, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Jia Lin Pan had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Falcon Properties purchased one property in one transaction for a total of $8 million and had not sold any properties over the same time period. The 10,395-square-foot property generated revenue of $550,016 or $53 per square foot, according to the most recent income and expense figures.

The property

The office building in Garment District has 10,395 square feet of built space and 14,289 square feet of additional air rights for a total buildable of 24,680 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 98 feet deep with a total lot size of 2,468 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $2.6 million. The most recent loan totaled $18 million and was provided by First Republic Bank on September 17, 2021.

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 $1,000 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 neighborhood

In Garment District, The majority, or 69 percent of the 51.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 2.1 times the average sales volume among other neighborhoods with $740 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, Garment District has 3.7 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Manhattan. It had 3.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of seven of the 13 commercial properties representing 1,279,513 square feet of the 1,700,783 square feet. The largest owner is Sol Goldman Investments, followed by Noorollah Asherian and then Falcon Properties.
There are no active new building construction projects on this tax block.

The majority, or 98 percent of the 1.7 million square feet of built space are office buildings, with retail buildings next occupying 2 percent of the space.

The seller

The PincusCo database currently indicates that Falcon Properties owned at least four commercial properties in New York City with 271,620 square feet and a city-determined market value of $48.9 million. (Market value is typically about 50% of actual value.) The portfolio has $35.5 million in debt, borrowed from First Republic Bank and Signature Bank. Within the portfolio, all identified are office properties. They are all located in Manhattan.

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