Nonprofit pays $12.9M to Sid Borenstein for specialty in FiDi

The nonprofit Center for Urban Community Services through the entity CUCS 105 Washington LLC paid $12.9 million to Sid Borenstein through the entity 105 Washington Development LLC for the midblock specialty building at 105 Washington Street in Financial District, Manhattan.
The deal closed on June 3, 2022 and was recorded on June 28, 2022. The property has 23,030 square feet of built space and 23,111 square feet of additional air rights for a total buildable of 46,130 square feet according to PincusCo analysis of city data. The sale price per built square foot is $558 and the price per buildable square foot is $278 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 March 25, 2021, for $9.5 million. The signatory for Sid Borenstein was Sid Borenstein. The signatory for Center for Urban Community Services was Joseph DeGenova.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Center for Urban Community Services purchased two properties in one transactions for a total of $10.8 million and has no record it sold any properties over the past 24 months.
The seller Sid Borenstein had not purchased any other properties and had not sold any properties over the same time period.

The property

The 105 Washington Street parcel has frontage of 50 feet and is 92 feet deep with a total lot size of 4,613 square feet. The lot is irregular. The zoning is C6-9 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 $1.2 million. The most recent loan totaled $6.7 million and was provided by TriState Capital Bank on March 25, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. 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 Financial District, the majority, or 71 percent of the 85.8 million square feet of commercial 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 and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 31 commercial properties representing 160,414 square feet of the 507,335 square feet. The largest owner is Concord Hotels, followed by Torkian Group and then Grubb Properties. There is one active new building construction project totaling 340,376 square feet. It is a 388-unit, 340,376-square-foot R-2 building developed by Richard Ohebshalom with plans filed December 11, 2014 and it has not been permitted yet.

The majority, or 62 percent of the 380,368 square feet of built space are hotel buildings, with residential elevator buildings next occupying 15 percent of the space.

Surrounding

Within a 400-foot radius of 105 Washington Street, PincusCo identified 16 commercial real estate items of interests occurred over the past 24 months.
Of those 16 items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on August 10, 2021 for the $37.9 million renovation of 140,463-square-foot A-2 building with one residential units at 123 Greenwich Street.
Of those 16 items, five were sales above $5 million totaling $353.1 million. The most recent of the five was MZ Rector 1800 Owner LLC which bought one condo unit in the 34,904-square-foot, 22-unit office building (RB) on 40 Rector Street for $15 million from Philips International on December 22, 2021.
Of those 16 items, 10 were loans above $5 million totaling $397.6 million. The most recent of the 10 was Zalman Goldman which borrowed $5.7 million from CP Capital secured by one condo unit in the 34,904-square-foot, 22-unit office building (RB) on 40 Rector Street on February 22, 2022.

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