33 Equities buys 20-unit former co-op in Soho for $20M

33 Equities through the entity 203 Spring Properties LLC in care of David Eshagoff’s office in Great Neck, acquired an interest from Lioncrest Capital through the entity 203 Spring Street Apartments, LLC for $20 million for the 20-unit mixed-use walkup building (C6) at 203 Spring Street in SoHo, Manhattan. The property also includes 3 commercial units.
The deal closed on August 24, 2022 and was recorded on September 13, 2022. The 20 units have 12,662 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,579 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 Lioncrest Capital was Michael Cummings. This is the sale of a 20-unit cooperative building. Lioncrest Capital has been buying up individual units in the buildings since at least early 2018. 33 Equities is led by Zach Hering and Tucker Shane.
According to a listing from Cushman & Wakefield, with an asking price of $23.25 million, “the 20 residential cooperative units total over ~ 12,000 square feet… the bed count breakdown is 3 2-bedrooms and 17 3-bedrooms. 19 of the 20 units are Free market and the remaining 1 unit is rent controlled. Given the buildings “cooperative” designation future ownership has an opportunity to create additional value through a multitude of exit strategies.” The brokers on the deal for Cushman included Eric Roth, Bobby Carrozzo, Tyler Signora, Harry James and Robert Burton.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Paul Brensilber, head officer and Donna Agosta, agent. The business entities are Jordan Cooper Llc and Spring Street Apt Corp. The 12 properties with a total of 12,662 square feet of built space generated revenue of $698,309 per year or $55 per square foot. The sale price per square foot was $1,580.

The property

The 203 Spring Street parcel has frontage of 45 feet and is 70 feet deep with a total lot size of 2,857 square feet. The lot is irregular. 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 $3.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $400 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 $5 million on this tax lot.

The neighborhood

In SoHo, the bulk, or 46 percent of the 9.4 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 15 percent of the space. In sales, SoHo has 1.6 times the average sales volume among other neighborhoods with $525.1 million in sales volume in the last two years and is the 26th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 196,499 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 walkup buildings in the past 12 months.

The block

On the tax block of 203 Spring Street, PincusCo has identified the owners of six of the 12 commercial properties representing 98,579 square feet of the 242,812 square feet. The largest owner is Quinlan Development Group, followed by Page Management and then Gatsby Enterprises.
There is one active new building construction project totaling 69,282 square feet. It is a 25-unit, 69,282-square-foot R-2 building developed by Timothy Quinlan with plans filed September 28, 2012 and permitted January 14, 2014.

The majority, or 41 percent of the 228,095 square feet of built space are elevator buildings, with walkup buildings next occupying 35 percent of the space.

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