Navika Capital pays $84.7M to Hakimian Organization for hotel condo in Financial District
The Long Island-based investment company Navika Capital Group through the entity White Pearl Hospitality LLC paid $84.7 million to the Manhattan-based private firm the Hakimian Organization through the entity 75 Wall Hotel, LLC for a hotel condo at 75 Wall Street in Financial District, Manhattan.
Navika Capital Group is a commercial real estate investment company based in Long Island with a focus on hotels. The owner of the $55 million note filed to foreclose in March 2021 on the building. The contract date was July 8, 2021.
Navika Capital Group through the entity White Pearl Hospitality LLC as borrower signed a acquisition loan with lender Madison Realty Capital through the entity 75 Wall Street Hotel LLC valued at $53 million for the property at 75 Wall Street in Financial District, Manhattan.
The deal closed on December 29, 2021 and was recorded on January 11, 2022.
The property has 194,477 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $435 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 Hakimian Organization was Behrouz Ben Hakimian. The signatory for Navika Capital Group was Naveen Shah.
Prior to this transaction, the buyer Navika Capital Group had not purchased any other properties and had not sold any properties over the past 24 months.
The seller Hakimian Organization had not purchased any other properties and had not sold any properties over the same time period.
In the Financial District, the majority, or 71 percent of the 85.8 million square feet of built space are office buildings, with residential elevator buildings next occupying 18 percent of the space. In sales, Financial District has the 5th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Financial District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 1.3 million square feet of commercial construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.
On the tax block, the majority, or 97 percent of the 500,691 square feet of built space are residential elevator buildings (including the subject building with a hotel), with retail buildings next occupying 1 percent of the space.
Within a 400-foot radius of 75 Wall Street, PincusCo identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, one was in new building development. It was a new building permit application filed on August 30, 2021 for a 19,825-square-foot R-2 building with 10 residential units at 126 Pearl Street.
Of those nine items, two were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $250,000 and one initial temporary certificate of occupancy issuance for a project that initially costed $371,000. The most recent of these two items was the temporary certificate of occupancy on March 19, 2021 for a 0-square-foot E building with no residential units at 100 Wall Street.
Of those nine items, two were sales above $5 million totaling $321.5 million. The most recent of the two was Mack Real Estate Credit Strategies which bought the 42,012-square-foot, one-unit hotel (H3) on 126 Water Street and six other properties for $315.8 million from Hersha Hospitality Trust and Cindat Capital Management on March 4, 2021.
Of those nine items, four were loans above $5 million totaling $479.7 million. The most recent of the four was Rudin Management which borrowed $100 million from Bank of America secured by the 1,104,184-square-foot, 70-unit office building (O4) on 110 Maiden Lane on July 9, 2021.
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