Kushner Companies sells 22-unit walkup in SoHo for $12.1M

The entity Fifth 156 Sullivan St. LLC in care of the management company Building Equity Management paid $12.1 million to Kushner Companies through the entity 156 Sullivan Street Realty LLC for the 22-unit residential walkup building (C7) at 156 Sullivan Street in SoHo, Manhattan.
The deal closed on June 6, 2023 and was recorded on June 12, 2023. The property has 15,883 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $758 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 in 2012, for $12.5 million. The signatory for Kushner Companies was Matt Burrows. The property is in care of the management and ownership company Building Equity Management.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that Building Equity Management had purchased any other properties and sold one property in one transaction for a total of $4.2 million over the past 24 months.
The seller Kushner Companies had not purchased any other properties and sold two properties in two transactions for a total of $40.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Tara Dexter, head officer and Cesar Cruz, site manager. The business entity is 156 Sullivan Street Realty Llc. The 15,883-square-foot property generated revenue of $871,774 or $55 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 22 residential units in SoHo has 15,883 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 40 feet and is 85 feet deep with a total lot size of 3,440 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the Sullivan-Thompson Historic District. The city-designated market value for the property in 2022 is $5.7 million. The most recent loan totaled $11.5 million and was provided by New York Community Bank on February 20, 2020.

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 seven housing violations and $650 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 block

On this tax block, PincusCo has identified the owners of three of the 17 commercial properties representing 44,982 square feet of the 175,354 square feet. The largest owner is Tristar Management Associates, followed by Kushner Companies and then Alexander Lavian.
There are no active new building construction projects on this tax block.

The majority, or 77 percent of the 175,354 square feet of built space are walkup buildings, with specialty buildings next occupying 11 percent of the space.

The seller

The PincusCo database currently indicates that Kushner Companies owned at least 54 commercial properties with 967 residential units in New York City with 561,423 square feet and a city-determined market value of $222.2 million. (Market value is typically about 50% of actual value.) The portfolio has $585.8 million in debt, with top three lenders as AIG, Citibank, and Argentic Investment Management respectively. Within the portfolio, the bulk, or 89 percent of the 561,423 square feet of built space are walkup properties, with elevator properties next occupying 7 percent of the space. The bulk, or 91 percent of the built space, is in Manhattan, with Brooklyn next at 9 percent of the space.

The buyer

The PincusCo database currently indicates that Building Equity Management owned at least two commercial properties with 50 residential units in New York City with 30,587 square feet and a city-determined market value of $12.3 million. (Market value is typically about 50% of actual value.) The portfolio has $13.5 million in debt, borrowed from New York Community Bank. Within the portfolio, all identified are walkup properties. They are all located in Manhattan.

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