Bando Construction pays $36M to Sachs Companies for 79-unit rental in Midtown West

UPDATED 7:30 a.m., July 19, 2024: Bando Construction through the entity Bando Geny LLC paid $36 million to Sachs Companies through the entity 65 West Property LLC for the 79-unit residential elevator building (D6) at 65 West 55th Street in Midtown West, Manhattan.
The deal closed on June 17, 2024 and was recorded on June 27, 2024. The property has 112,000 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $321 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 June 7, 2021, for $45 million. The signatory for Sachs Companies was Curtis Sachs. The signatory for Bando Construction was John Choi. The contract date was May 20, 2024.

The Commercial Observer reported Rosewood Realty Group was the broker.  The purchase was financed in part by John Choi assuming a $23.2 million loan that Prime Finance assigned to KEB Hana.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer John Choi had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Sachs Companies 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 Curtis Sachs, head officer and Dean Palin, officer. The business entities are J&M Realty Services Corp. and 65 West Property Llc.

The property

The residential elevator building with 79 residential units in Midtown West has 112,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 117 feet and is 100 feet deep with a total lot size of 11,798 square feet. The city-designated market value for the property in 2022 is $23.4 million. The most recent loan totaled $81.2 million and was provided by Prime Finance Partners on June 7, 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 three DOB violations, $1,250 in ECB penalties, eight housing violations, and $5,300 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 17 of the 35 commercial properties representing 1,158,105 square feet of the 1,597,691 square feet. The largest owner is Vida Shoes International, followed by Solil Management and then Sachs Companies.
There are no active new building construction projects on this tax block.

The majority, or 58 percent of the 1.6 million square feet of built space are office buildings, with elevator buildings next occupying 16 percent of the space.

Correction: A prior version of this post identified John Choi as the buyer but in fact it is an affiliate of Bando Construction.

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