JPMorgan Chase takes title to retail in Chelsea, $38.2M transfer value

JPMorgan Chase through the entity MW Tolero Holding Corp. acquired through bankruptcy with a credit bid as the former lender the retail building (K2) at 547 West 27th Street in Chelsea, Manhattan. The expected use is hold for sale.  The transfer price in city records was $38.2 million. The former owner, the debtor, was James Pastreich’s Pinetree Group through the entity Mariners Gate, LLC.
The transfer closed on June 18, 2026 and was recorded on June 25, 2026. The property has 97,200 square feet of built space and 32,649 square feet of additional air rights for a total buildable of 129,908 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $393 and the price per buildable square foot is $294 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 signatory for Pinetree Group was James Y.A. Pastreich. The signatory for JPMorgan Chase was Andrew Bergman . The contract date was June 18, 2026. PincusCo reported on a scheduled foreclosure auction. Pastreich placed the asset in bankruptcy protection in the Southern District of New York, No. 25-12819.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has records that the buyer JPMorgan Chase purchased one property in one transaction for a total of $320.2 million and sold one property in one transaction for a total of $259.5 million over the past 24 months.
The seller Pinetree Group had not purchased any other properties and had not sold any properties over the same time period. The 97,200-square-foot property generated revenue of $5 million or $52 per square foot, according to the most recent income and expense figures.
Crain’s New York Business reported on December 18, 2025 on the bankruptcy.

The property

The retail building in Chelsea has 97,200 square feet of built space and 32,649 square feet of additional air rights for a total buildable of 129,908 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 197 feet deep with a total lot size of 17,275 square feet. The lot is irregular. The zoning is C6-3 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 7.52 times FAR for residential with inclusionary housing. The property is in the West Chelsea Historic District. The city-designated market value for the property in 2022 is $26.1 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $30 million commercial foreclosure concerning a loan filed on September 19, 2024, by JPMorgan Chase against Yitzhak Pastreich and Pinetree Group. In addition, according to city public data, the property has received one DOB violation and $800 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 28, 2018. 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 Chelsea, The bulk, or 35 percent of the 52.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 8th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Chelsea has 2 times the average amount of major developments relative to other neighborhoods and is the 13th highest in Manhattan. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 10 of the 14 commercial properties representing 302,970 square feet of the 410,898 square feet. The largest owner is Atlantic Development Group , followed by Jame Y.A. Pastreich and then Kamran Hakim.
On the tax block, there were two new building construction projects totaling 94,754 square feet. The largest is a 60-unit, 76,949 square-foot residential (R-2) building submitted by Silvera Properties and filed by David Silvera with plans filed December 11, 2024 and it has not been permitted yet. The second largest is a 62-unit, 17,804 square-foot residential (R-2) building submitted by Rodney Sani and filed by Rodney Sani with plans filed March 11, 2026 and it has not been permitted yet.

The majority, or 37 percent of the 410,898 square feet of built space are retail buildings, with elevator buildings next occupying 33 percent of the space.

The seller

The PincusCo database currently indicates that Pinetree Group owned at least one commercial property with six residential units in New York City with 5,524 square feet and a PincusCo-determined asset value of $5.6 million. The portfolio consists of at least a single mixed-use property.

The buyer

The PincusCo database currently indicates that Jpmorgan Chase owned at least five commercial properties with six residential units in New York City with 1,979,053 square feet and a PincusCo-determined asset value of $997.4 million. Within the portfolio, all identified are office properties.

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