Jung Ho Park pays $5M for hotel in Chelsea

Jung Ho Park through the entity Alea Partners NY LLC paid $5 million to So Young Shin through the entity Le Rouge Graine LLC for the hotel building (H9) at 297 Seventh Avenue in Chelsea, Manhattan.
The deal closed on November 22, 2023 and was recorded on November 29, 2023. The property has 4,800 square feet of built space and 18,595 square feet of additional air rights for a total buildable of 23,390 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,041 and the price per buildable square foot is $213 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 27, 2021, for $7.3 million. The signatory for So Young Shin was So Young Shin. The signatory for Jung Ho Park was Jung Ho Park. The contract date was November 3, 2023. John H. Lee is identified as an attorney in other docs and is the registered agent of the buyer entity. So Young Shin is with the seller entity.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Jung Ho Park had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller So Young Shin had not purchased any other properties and had not sold any properties over the same time period.

The property

The hotel building in Chelsea has 4,800 square feet of built space and 18,595 square feet of additional air rights for a total buildable of 23,390 square feet according to a PincusCo analysis of city data. The parcel has frontage of 23 feet and is 100 feet deep with a total lot size of 2,339 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 $1.5 million. The most recent loan totaled $5 million and was provided by NewBank on October 27, 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 five DOB violations and $1,050 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 Chelsea, The bulk, or 36 percent of the 52.4 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 6th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Chelsea has 2.1 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Manhattan. It had 2.1 million 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 13 of the 23 commercial properties representing 714,606 square feet of the 1,325,984 square feet. The largest owner is Yitzchak Schwartz, followed by Two Kings Real Estate and then So Young Shin.
There are no active new building construction projects on this tax block.

The majority, or 55 percent of the 1.3 million square feet of built space are office buildings, with elevator buildings next occupying 26 percent of the space.

The seller

The PincusCo database currently indicates that So Young Shin owned at least one commercial property in New York City with 4,800 square feet and a city-determined market value of $1.5 million. (Market value is typically about 50% of actual value.) The portfolio has $5 million in debt, borrowed from NewBank. The portfolio consists of at least a single hotel property. It is located in Manhattan.

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