Kinsmen refiles demo plans where Brandon Miller proposed 72K office building

Kinsmen Property Group, a joint venture between Madison Group and State Building Group, refiled seven demolition plans originally filed by Real Estate Equities Corporation, the troubled development firm co-owned by the late real estate developer Brandon Miller, to clear the site for a 72,441-square-foot office building at 156 to 166 Bowery in Nolita, Manhattan. There has been no update to the new building plans or to the ownership of the new building project which remain with REEC, according to a review of information on the city’s Department of Buildings.
Miller died by suicide, according to media reports, as debts piled up, The Real Deal and others have reported.

An employee of Real Estate Equities Corporation (REEC) filed the original demolition plans on June 7, 2021, to demolish the seven buildings from 156 to 166 Bowery. The city never approved those plans. Michael Hight of Kinsmen Property Group refiled each of the new demolition plans, under job numbers M01114505, M01114506, M01114497, M01114508, M01114511, M01114512 and M01114514.

The new building plans, filed on April 21, 2022 under job number M00703761, call for the construction of a 72,441-square-foot mixed-use commercial building with the address 156 Bowery in Nolita, Manhattan. Brandon Klein, VP of Real Estate Equities Corporation, filed the plans, which have not been approved by the city.

Kinsmen Property Group, a joint venture between Madison Group and State Building Group, purchased the properties in 2017 and 2018. In September of 2020, Brandon Miller and Mark Seigel, through their Real Estate Equities Corporation, signed a 99-year ground lease valued at $50 million with Kinsmen Property Group for the seven parcels.

Ground Lease LINK

The plans call for the construction of an 85-foot-tall, seven-story building and were filed with the New York City Department of Buildings under job number M00703761.

The development site spans multiple tax lots. The lot has a width of 99 feet.

Prior sales and revenue

This property was sold with 7 other properties by Kinsmen Property Group for $50 million to Real Estate Equities Corporation on August 27, 2020.

The 6,685-square-foot property generated revenue of $302,964 or $45 per square foot, according to the most recent income and expense figures.

Development

Real Estate Equities Corporation submitted a new building construction project for a 72,441 square-foot business (B) building at 156 Bowery. The plan was filed on April 21, 2022. It calls for the construction of a 85-foot tall, seven-story building and was filed with the New York City Department of Buildings under job number M00703761. The architect is Perkins&Will Architects, Pc. The project is described in the filing as: 7 story commercial new building filing.

Violations and lawsuits

According to city public data, the property has received $400 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Nolita, The bulk, or 50 percent of the 3.1 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 20 percent of the space. In sales, Nolita has near average sales volume among other neighborhoods with $27.5 million in sales volume in the last two years and is the 43rd highest in Manhattan. For development, Nolita has near average amount of major developments among other neighborhoods and is the 42nd highest in Manhattan. It had 41,839 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 13 of the 24 commercial properties representing 96,254 square feet of the 177,363 square feet. The largest owner is Janet Giaimo Vitale, followed by Jonis Realty and then Ping Cheung. On the tax block, there was one new building construction project filed totaling 72,441 square feet. It is a 72,441 square-foot business (B) building submitted by Real Estate Equities Corporation and filed by Brandon Klein with plans filed April 21, 2022 and it has not been permitted yet.

The owner

The PincusCo database currently indicates that Real Estate Equities Corporation owned at least 10 commercial properties with 11 residential units in New York City with 43,803 square feet and a city-determined market value of $21.9 million. (Market value is typically about 50% of actual value.) The portfolio has $178.5 million in debt, with top three lenders as Parkview Financial, Raven Capital Management, and Heritage Capital Management respectively. Within the portfolio, the bulk, or 100 percent of the 43,803 square feet of built space are mixed-use properties, with development properties next occupying 0 percent of the space. They are all located in Manhattan.

The owner according to the Department of Housing Preservation and Development is Joel Horowitz, head officer. The business entity is J.D.Horowitz Family Trust.

The surrounding

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Direct link to the property’s ACRIS page and link to DOB NOW portal.