Kissling Interests pays $7M for retail in Hudson Yards

Kissling Interests through the entity Romeo-Kilo Corp. paid $7 million to Daniel J. Lunney through the entity 421 9th Avenue Corp. for retail building (K2) at 421 Ninth Avenue in Hudson Yards, Manhattan.
The deal closed on January 9, 2023 and was recorded on February 2, 2023. The property has 2,962 square feet of built space and 12,845 square feet of additional air rights for a total buildable of 15,800 square feet according to PincusCo analysis of city data. The sale price per built square foot is $2,363 and the price per buildable square foot is $443 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 Daniel J. Lunney was Daniel J. Lunney. The signatory for Kissling Interests was Steven W. Pearsall.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Kissling Interests had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Daniel J. Lunney had not purchased any other properties and had not sold any properties over the same time period. The 2,962-square-foot property generated revenue of $229,209 or $77 per square foot, according to the most recent income and expense figures.

The property

The 421 9th Avenue parcel has frontage of 19 feet and is 80 feet deep with a total lot size of 1,580 square feet. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Hudson Yards, the majority, or 68 percent of the 20.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 17 percent of the space. In sales, Hudson Yards has near average sales volume among other neighborhoods with $333.6 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Hudson Yards has 2 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 13 commercial properties representing 550,252 square feet of the 699,084 square feet. The largest owner is SL Green Realty, followed by RGS Ninth Avenue Realty LLC and then Hornig Capital Partners.
On the tax block, there were two new building construction projects totaling 60,927 square feet. The largest is a 24-unit, 48,110-square-foot R-2 building developed by Andrew Lynn with plans filed September 17, 2015 and permitted November 23, 2015. The second largest is a 12-unit, 12,817-square-foot J-2 building developed by James Papaionnou with plans filed November 7, 2007 and permitted February 18, 2016.

The majority, or 78 percent of the 699,084 square feet of built space are office buildings, with elevator buildings next occupying 19 percent of the space.

The buyer

The PincusCo database currently indicates that Kissling Interests owned at least four commercial properties in New York City with 45,204 square feet and a city-determined market value of $8.6 million. (Market value is typically about 50% of actual value.) The portfolio has $7.8 million in debt, borrowed from JPMorgan Chase. Within the portfolio, the bulk, or 83 percent of the 45,204 square feet of built space are walkup properties, with elevator properties next occupying 17 percent of the space. They are all located in Manhattan.

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