Manga Hotel Group pays $56M to Lam Generation for hotel in Hudson Square

Manga Hotel Group through the entity Mango Soho LLC paid $56 million to Lam Generation through the entity Soho 54 LLC for the hotel building (H3) at 54 Watts Street in Hudson Square, Manhattan. The expected use is cash flowing.
The deal closed on February 13, 2025 and was recorded on February 20, 2025. The property has 54,375 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,029 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 Lam Generation was Jeffrey Lam . The signatory for Manga Hotel Group was Sukhdev Toor. The contract date was November 8, 2024. The Commercial Observer reported on the purchase yesterday.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Manga Hotel Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Lam Generation had not purchased any other properties and sold one property in one transaction for a total of $42.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Silvio Zinnanti, head officer and Raymond Lam, shareholder. The business entity is Soho 54 Llc. The 54,375-square-foot property generated revenue of $10.1 million or $187 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Hudson Square has 54,375 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 62 feet and is 87 feet deep with a total lot size of 5,432 square feet. The lot is irregular. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $24.4 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

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Hudson Square, The majority, or 76 percent of the 11.9 million square feet of commercial built space are office buildings, with industrial buildings next occupying 8 percent of the space. In sales, Hudson Square has the 43rd highest sale turnover among other neighborhoods in Manhattan with $34.9 million in sales volume in the last two years. For development, Hudson Square has had very little major development activity relative to other neighborhoods.It had -5,894,871 square feet of commercial and multi-family construction under development in the last two years, which represents -49.72 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The majority, or 69 percent of the 588,844 square feet of built space are office buildings, with elevator buildings next occupying 21 percent of the space.

The seller

The PincusCo database currently indicates that Lam Generation owned at least six commercial properties in New York City with 339,662 square feet and a city-determined market value of $104.1 million. (Market value is typically about 50% of actual value.) The portfolio has $209.2 million in debt, with top three lenders as MetLife, Investors Bank, and Metropolitan Commercial Bank respectively. Within the portfolio, the bulk, or 86 percent of the 339,662 square feet of built space are hotel properties, with retail properties next occupying 12 percent of the space. The bulk, or 98 percent of the built space, is in Manhattan, with Queens next at 2 percent of the space.

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