Madison Realty Capital pays $4.1M for retail in Chelsea

Madison Realty Capital through the entity 550 W 29th St Commercial Owner LLC paid $4.1 million to Raba Haim Abramov through the entity 550 West 29th Street LLC for the retail condo at 550 West 29th Street in Chelsea, Manhattan. The expected use is cash flowing.
The deal closed on September 13, 2024 and was recorded on September 20, 2024. The property has 5,022 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $822 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 Raba Haim Abramov was Raba Haim Abramov. The signatory for Madison Realty Capital was Josh Zegen. The contract date was September 13, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Madison Realty Capital purchased 13 properties in seven transactions for a total of $335.6 million and sold 15 properties in 12 transactions for a total of $224.6 million over the past 24 months.
The seller Raba Haim Abramov had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail condo in Chelsea has 5,022 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 5,022 square feet. The city-designated market value for the property in 2022 is $1.7 million.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 23, 2020. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by 550 WEST 29TH STREET LLC** to create 19 residential units and 1 commercial units in a building at 550 West 29th Street in Chelsea, Manhattan, called 550 West 29th Street Condominium that has a $81.9 million sellout, according to an January 18, 2017 submission to the New York State Attorney General.

The neighborhood

In Chelsea, The bulk, or 35 percent of the 52.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 9th highest sale turnover among other neighborhoods in the city with $1.1 billion in sales volume in the last two years. For development, Chelsea has 1.5 times the average amount of major developments relative to other neighborhoods and is the 20th highest in Manhattan. It had 1.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 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 10 of the 13 commercial properties representing 791,078 square feet of the 1,088,861 square feet. The largest owner is Eight Points Asset Management, followed by Anastasios Tzezailidis and then Pphe Hotel Group.
On the tax block, there were three new building construction projects totaling 377,249 square feet. The largest is a 372-unit, 309,463 square-foot residential (R-2) building submitted by Lalezarian Properties and filed by David Sani with plans filed February 17, 2012 and permitted January 29, 2015. The second largest is a 19-unit, 55,447 square-foot residential (R-2) building submitted by Tamarkin Co. and filed by Cary Tamarkin with plans filed February 25, 2015 and permitted August 9, 2016.

The majority, or 93 percent of the 1.1 million square feet of built space are elevator buildings, with walkup buildings next occupying 4 percent of the space.

The buyer

The PincusCo database currently indicates that Madison Realty Capital owned at least 63 commercial properties with 2,649 residential units in New York City with 2,761,130 square feet and a city-determined market value of $385.5 million. (Market value is typically about 50% of actual value.) The portfolio has $1.5 billion in debt, with top three lenders as Signature Bank, MF1 Capital, and Elliott Investment Management respectively. Within the portfolio, the bulk, or 71 percent of the 2,761,130 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 42 percent of the built space, is in Queens, with Manhattan next at 34 percent of the space.

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