MacArthur Holdings pays $11.9M for foreclosed retail in Meatpacking District

MacArthur Holdings through the entity 415 Retail LLC, paid $11.9 million to the former lender which previously took control of the retail condominium unit at 415 West 13th Street in Meatpacking District, Manhattan from the former borrower in a foreclosure action. This is tax lot 1001, known as unit 1S.
MacArthur Holdings already owns a six-floor, 47,932-square-foot office condominium unit, 3S, in the building, which it held onto after a group converted the building in 2002 into four condominium units.

To finance the purchase and tenant improvement and other expenses, MacArthur Holdings borrowed $10 million from Cerco Funding.

The deal closed on September 29, 2023 and was recorded on October 3, 2023. The property has 11,166 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,069 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, a securitized bond trust, acquired title through foreclosure on April 4, 2022, in a transfer valued at $21.1 million. The signatory for the seller, the trust Series 2016-JP3, was Gianluca Montalti and William Clarkson. The signatory for MacArthur Holdings was Philip Katz. The contract date was April 19, 2023. The investor through the German fund RREEF, now known as DWS Group, was the previous owner, and it bought the retail condo for $34 million from Thor Equities in 2011, then lost it to its lender.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer MacArthur Holdings purchased one property in one transaction for a total of $4.3 million and has no record it sold any properties over the past 24 months.
The seller Series 2016-JP3 had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail condo in Meatpacking District has 11,166 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 11,166 square feet. The city-designated market value for the property in 2022 is $11.3 million.

Development

On the lot, there is one active major alteration construction project for a 74,903 square-foot M building. The project was submitted by Philip Katz with plans filed April 21, 2016 and permitted October 17, 2016.

The neighborhood

In Meatpacking District, The bulk, or 26 percent of the 2 million square feet of commercial built space are office buildings, with retail buildings next occupying 26 percent of the space. In sales, Meatpacking District has the 43rd highest sale turnover among other neighborhoods in Manhattan with $37.3 million in sales volume in the last two years. For development, Meatpacking District has had very little major development activity relative to other neighborhoods.It had -63 square feet of commercial and multi-family construction under development in the last two years, which represents 0.00 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 16 commercial properties representing 451,188 square feet of the 614,655 square feet. The largest owner is Winter Management, followed by William Gottlieb Real Estate and then Thor Equities.
On the tax block, there was one new building construction project filed totaling 117,657 square feet. It is a 117,657 square-foot business (B) building submitted by Aurora Capital Associates and William Gottlieb Real Estate and filed by Matthew Abreu with plans filed October 29, 2015 and permitted April 18, 2017.

The majority, or 67 percent of the 614,655 square feet of built space are office buildings, with retail buildings next occupying 27 percent of the space.

The buyer

The PincusCo database currently indicates that MacArthur Holdings owned at least four commercial properties with eight residential units in New York City with 85,285 square feet and a city-determined market value of $26.6 million. (Market value is typically about 50% of actual value.) The portfolio has $7 million in debt, borrowed from Dime Community Bank. Within the portfolio, the bulk, or 92 percent of the 85,285 square feet of built space are retail properties, with walkup properties next occupying 8 percent of the space. The bulk, or 83 percent of the built space, is in Manhattan, with Brooklyn next at 17 percent of the space.

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