NoMad dev site with permitted plans for 168-key hotel, had faced foreclosure, sells for $30M
842 Sixth Avenue (Credit - Cyclomedia)
The entity 842 Edenview LLC, with the signature of Hung Pin Hung of Brooklyn-based Pro-H Group, paid $30 million to the Chun family’s 842 Enterprises, Inc. for the vacant lot at 842 Sixth Avenue in NoMad, Manhattan.
On the lot, there is one active new building construction project for a 168-unit, 77,819 square-foot hotel (R-1) building. The project was submitted by Rob Chun with plans filed November 13, 2017 and permitted November 1, 2018.
The deal closed on August 22, 2024 and was recorded on September 9, 2024. The signatories for the seller were Robert Chun and Helen Chun.
Arizona-based lender Avana Capital filed a $33 million pre-foreclosure action in December 2023 at the stalled construction site, where developers planned the world’s tallest modular hotel project, according to a press release from 2019 announcing $65 million in construction funding.
Case LINK
The original maximum senior loan was $50 million, but the complaint says only $25.5 million of that is outstanding.
The entity that sold it has owned it since the April 1993 when Kang Moon Chun purchased it for $4.26 million, according to a PincusCo analysis of transfer tax records.
The property
The vacant parcel has frontage of 55 feet and is 100 feet deep with a total lot size of 7,718 square feet. The lot is irregular. The zoning is C6-4X which allows for up to 10 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 $12 million.
Violations and lawsuits
The property was involved in two lawsuits and zero bankruptcies over the past two years. The highest value suit was a $33.3 million commercial foreclosure concerning a loan filed on December 22, 2023, by Avana Capital against Robert Y. Chun and Yong Woo Phillip Chun. In addition, according to city public data, the property has received $12,150 in OATH penalties in the last year.
The neighborhood
In NoMad, The majority, or 66 percent of the 13 million square feet of commercial built space are office buildings, with hotel buildings next occupying 15 percent of the space. In sales, NoMad has 1.4 times the average sales volume among other neighborhoods with $379.6 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, NoMad has 2.2 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 2.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 18 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of 12 of the 23 commercial properties representing 479,241 square feet of the 891,689 square feet. The largest owner is Lam Group, followed by Vanbarton Group and then Hyang Ja Lee.
On the tax block, there were three new building construction projects totaling 750,963 square feet. The largest is a 373,990 square-foot business (B) building submitted by HFZ Capital Group and filed by Anthony Marrone with plans filed September 19, 2017 and permitted November 19, 2018. The second largest is a 401-unit, 299,154 square-foot hotel/dormitory/shelter (R-1) building submitted by Lam Group and filed by John Lam with plans filed November 7, 2014 and permitted August 19, 2015.
The majority, or 58 percent of the 891,689 square feet of built space are hotel buildings, with office buildings next occupying 27 percent of the space.
Direct link to Acris document. link