Nassimi Realty acquires retail, office valued at $36.9M from Caspi, Mctaggart in FiDi, Williamsburg

Nassimi Realty acquired a retail property at 74 Broad Street in the Financial District and an office property at 134 Broadway in Williamsburg, with a combined value at $36.9 million, from Caspi Development and Mactaggart Family & Partners through two deed in lieu of foreclosure transactions. In both transactions, Nassimi Realty assumed loans that for the two properties have an original principal of $33.3 million.

In the first transaction, Nassimi Realty through the entity 74 Broad NR, LLC paid $19.6 million to Caspi Development and Mactaggart Family & Partners through the entity 74 Broad Owners Lp for the retail building (O5) at 74 Broad Street in Financial District, Manhattan.
The deal closed on December 28, 2023 and was recorded on January 8, 2024. The property has 21,958 square feet of built space and 10,909 square feet of additional air rights for a total buildable of 32,860 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $893 and the price per buildable square foot is $596 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 bought the property on November 17, 2015, for $14.2 million.

The signatory for Caspi Development and Mactaggart Family & Partners was Ivaylo Ninov. The signatory for Nassimi Realty was Mike M. Nassimi. The contract date was August 16, 2023. This is a deed in lieu of foreclosure, according to the deed transfer. Ivaylo Ninov is the US CEO of Mactaggart Family & Partners. At the same time, Nassami Realty assumed a loan from Banc of California, successor to Pacific Western Bank, with an original 2018 principal of $17.15 million.

In the second transaction, Nassimi Realty through the entity 134 Broadway Nr, LLC paid $17.3 million to Caspi Development and Mactaggart Family & Partners through the entity 134 Broadway Owners Lp for the office building (O2) at 134 Broadway in Williamsburg, Brooklyn. The deal closed on December 28, 2023 and was recorded on January 8, 2024. The property has 23,064 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $750 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 bought the property on May 17, 2018, for $18.9 million.

The signatory for Caspi Development and Mactaggart Family & Partners was Ivaylo Ninov. The signatory for Nassimi Realty was Mike M. Nassimi. The contract date was August 16, 2023. This is a deed in lieu of foreclosure, according to the deed transfer. Ivaylo Ninov is the US CEO of Mactaggart Family & Partners. At the same time, an affiliate of Nassimi Realty assumed a $16.2 million loan originally given by Pacific Western Bank in 2018.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Nassimi Realty had purchased any other properties and sold one property in one transactions for a total of $3.6 million over the past 24 months.
The seller Caspi Development had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail building in Financial District has 21,958 square feet of built space and 10,909 square feet of additional air rights for a total buildable of 32,860 square feet according to a PincusCo analysis of city data. The parcel has frontage of 33 feet and is 100 feet deep with a total lot size of 3,286 square feet. The lot is irregular. The zoning is C5-5 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 $5 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $17.1 million commercial foreclosure concerning a loan filed on September 21, 2022, by Pacific Western Bank against Joshua Caspi, Western Heritable Investment Company, and Mactaggart Family & Partners. In addition, according to city public data, the property has received $2,595 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on January 9, 2020. 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 Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 5th highest sale turnover among other neighborhoods in the city with $2.4 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 12.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 1,955,646 square feet of the 2,038,224 square feet. The largest owner is Metropolitan Transportation Authority, followed by Jackson Mak and then Heejung Kang.
On the tax block, there was one new building construction project filed totaling 56,988 square feet. It is a 130-unit, 56,988 square-foot hotel/dormitory/shelter (R-1) building submitted by Andy Mak and filed by Andy Mak with plans filed August 9, 2013 and permitted March 9, 2016.

The majority, or 95 percent of the 2 million square feet of built space are office buildings, with hotel buildings next occupying 3 percent of the space.

The seller

The PincusCo database currently indicates that Mactaggart Family & Partners owned at least two commercial properties with 18 residential units in New York City with 15,148 square feet and a city-determined market value of $5.3 million. (Market value is typically about 50% of actual value.) The portfolio has $7.8 million in debt, borrowed from Provident Bank. Within the portfolio, the bulk, or 77 percent of the 15,148 square feet of built space are walkup properties, with mixed-use properties next occupying 23 percent of the space. They are all located in Brooklyn.
The PincusCo database currently indicates that Caspi Development owned at least two commercial properties in New York City with 108,426 square feet and a city-determined market value of $31.5 million. (Market value is typically about 50% of actual value.) The portfolio has $116.6 million in debt, borrowed from Hana Financial Investment and Strategic Funding. Within the portfolio, the bulk, or 75 percent of the 108,426 square feet of built space are hotel properties, with office properties next occupying 25 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Nassimi Realty owned at least three commercial properties in New York City with 509,672 square feet and a city-determined market value of $193.3 million. (Market value is typically about 50% of actual value.) The portfolio has $5.6 million in debt, borrowed from Flagstar Bank. Within the portfolio, the bulk, or 98 percent of the 509,672 square feet of built space are office properties, with mixed-use properties next occupying 2 percent of the space. The bulk, or 98 percent of the built space, is in Manhattan, with Brooklyn next at 2 percent of the space.

Direct link to Acris document. link