KPG Funds, LaSalle pay $84.5M to Vornado Realty Trust for two properties in SoHo

KPG Funds and LaSalle Investment Management pays $84.5 million to Vornado Realty Trust for two properties in SoHo.

In the larger, KPG Funds and LaSalle Investment Management through the entity Kpg 155 Spring Owner LLC paid $67.4 million to Vornado Realty Trust through the entity Vno 155 Spring Street LLC for two condo units at 155 Spring Street in SoHo, Manhattan.
To finance the acquisition, KPG Funds through the entity Kpg 155 Spring Owner LLC as borrower signed an acquisition loan with lender BrightSpire Capital through the entity Brightspire Credit 3, LLC valued at $46.1 million.

The deals closed on January 13, 2022 and was recorded on January 31, 2022.
The two units have 37,736 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,786 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 Vornado Realty Trust was Steven J. Borenstein. The signatory for KPG Funds and LaSalle Investment Management was Gregory Kraut.
Prior to this transaction, the buyer KPG Funds purchased two properties in two transactions for a total of $34.1 million and had not sold any properties over the past 24 months.
The seller Vornado Realty Trust purchased seven properties in two transactions for a total of $34 million and sold 32 properties in 32 transactions for a total of $1.3 billion over the same time period.

Gregory Kraut co-founded KPG Funds, which acquires property with pension fund backing, according to Kraut’s LinkedIn page.   The Real Deal reported on this transaction in September.  The contract date is May 10, 2021. LaSalle Global Partner Solutions is a division of Lasalle investment Management. 
On the tax block, the majority, or 46 percent of the 397,906 square feet of built space are residential elevator buildings, with mixed-use buildings next occupying 21 percent of the space.
Within a 400-foot radius of 155 Spring Street, Pincusco identified 10 commercial real estate items of interests occurred over the past 24 months.
Of those 10 items, one was in new building development. It was a new building permit application filed on July 22, 2021 for a 25,552-square-foot R-2 building with nine residential units at 182 Spring Street.
Of those 10 items, two were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $1.1 million and one permit with a total initial cost of $1.4 million. The most recent of these two items was the permit on June 24, 2021 for a 0-square-foot B building with N/A residential units at 430 West Broadway.
Of those 10 items, two were sales above $5 million totaling $42.1 million. The most recent of the two was Before2c LLC which bought three condo units in the 202-square-foot, 13-unit mixed-use building (RM) on 73 Wooster Street and 0 other properties for $14.1 million from 73 Wooster Street Condo on July 28, 2021.
Of those 10 items, five were loans above $5 million totaling $71.8 million. The most recent of the five was Henry Hay which borrowed $6.7 million from Hanmi Bank secured by the 2,000-square-foot, one-unit retail building (K1) on 76 Thompson Street and one other property on May 25, 2021.

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In the second transaction, KPG Funds and LaSalle Investment Management through the entity Kpg 480 Broadway Owner LLC paid $17.1 million to Vornado Realty Trust through the entity 480-486 Broadway, LLC for retail building at 478 Broadway in Little Italy, Manhattan.
The purchase was funded by an acquisition loan with lender Callodine Thorofare through the entity Thorofare Asset Based Lending Reit Fund V, LLC valued at $15.7 million.

The deal closed on January 13, 2022 and was recorded on January 31, 2022.
The property has 55,015 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $310 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 Vornado Realty Trust was Steven J. Borenstein. The signatory for KPG Funds and LaSalle Investment Management was Gregory Kraut.

The 55,015-square-foot property generated revenue of $6.1 million or $112 per square foot, according to the most recent income and expense figures.

Vornado owned this property 478-482 Broadway (lot 10) along with the neighboring building 484-486 Broadway (lot 14), but that property is not included in this transfer.
In Little Italy, the bulk, or 31 percent of the 4.4 million square feet of built space are office buildings, with residential walkup buildings next occupying 24 percent of the space. In sales, Little Italy has had very little sales volume relative to other neighborhoods with $174.7 million in sales volume in the last two years. For development, Little Italy has had very little major development activity relative to other neighborhoods.It had 82,921 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.
On the tax block, the majority, or 31 percent of the 503,649 square feet of built space are office buildings, with residential elevator buildings next occupying 25 percent of the space.
Within a 400-foot radius of 478 Broadway, Pincusco identified 11 commercial real estate items of interests occurred over the past 24 months.
Of those 11 items, one was for major renovation including a certificate of occupancy change. It was an initial temporary certificate of occupancy issued on July 10, 2020 for the $695,000 renovation of 33,841-square-foot M building with no residential units at 462 Broadway.
Of those 11 items, four were sales above $5 million totaling $124.5 million. The most recent of the four was 496 Broadway Fee Owner LLC which bought the 9,713-square-foot, five-unit mixed-use building (S4) on 496 Broadway for $12.9 million from Thor Equities on January 18, 2022.
Of those 11 items, six were loans above $5 million totaling $211.2 million. The most recent of the six was Crane Partners Asset Management which borrowed $19.2 million from Woori America Bank secured by one condo unit in the 13,666-square-foot, 10-unit mixed-use building (RM) on 72 Mercer Street on December 17, 2021.

Direct link to Acris document. link