High-profile retail in Garment District sells for $9.7M to JTRE, partners

Jack Terzi’s JTRE and a Michael Cohen through the entity 958 Sixth Avenue Owner, LLC paid $9.7 million to Salvatore Bullaro through the entity Scg Realty II, LLC for retail building (K2) at 1330 Broadway in Garment District, Manhattan.
PincusCo reported in May that JTRE was in contract to buy the property for $12 million. An industry source said JTRE is a partner on this purchase.
The deal closed on July 18, 2022 and was recorded on August 3, 2022. The property has 5,640 square feet of built space and 5,635 square feet of additional air rights for a total buildable of 11,270 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,719 and the price per buildable square foot is $860 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 the seller was Salvatore Bullaro, while other members or signatories for the seller entity include Olivia Armao and Tina-Marie Bullaro. The signatory for Michael Cohen was Michael Cohen. It is unclear which Michael Cohen in New York City real estate is the buyer, as there are several individuals active with the same name.

Prior sales and revenue

The 5,640-square-foot property generated revenue of $1.1 million or $187 per square foot, according to the most recent income and expense figures.

The property

The 1330 Broadway parcel has frontage of 18 feet and is 60 feet deep with a total lot size of 1,127 square feet. The zoning is C6-6 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.4 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $4.2 million commercial foreclosure concerning a loan filed on August 18, 2021, by Provident Bank against Olivia Armao. 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 $5 million on this tax lot.

The neighborhood

In Garment District, the majority, or 70 percent of the 51.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 2.8 times the average sales volume among other neighborhoods with $927.9 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Garment District has 2.9 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Manhattan. It had 3.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space. There were two 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 15 of the 27 commercial properties representing 1,526,297 square feet of the 1,753,785 square feet. The largest owner is Vornado Realty Trust, followed by IceCap Group and then BLDG Management.
There is one active new building construction project totaling 173,835 square feet. It is a 363-unit, 173,835-square-foot R-1 building developed by Andrew Lester with plans filed April 29, 2021 and it has not been permitted yet.

The majority, or 92 percent of the 1.5 million square feet of built space are office buildings, with hotel buildings next occupying 4 percent of the space.

Direct link to Acris document. link