Northwood pays $323.5M to Propp family for two Soho office buildings

Northwood Investors pays $323.5 million to the Propp family for two office building in Soho at 520 and 524 Broadway. The family has owned the buildings since the 1920s and 1930s. The acquisition was in two separate transactions.

In the first, Northwood Investors through the entity NW 524 Soho LLC paid $235.8 million to the Propp family through the entity 524 Broadway Company, L.P. for the office building (O6) at 524 Broadway in Soho, Manhattan.
The deal closed on June 10, 2021 and was recorded on June 16, 2021.
The property has 143,637 square feet of built space and 0 square feet of additional air rights for a total buildable of 61,860 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,641 per the PincusCo analysis.
The signatories for the Propp family were Helen Heller and Morris Propp. The signatory for Northwood Investors was Aaron Weitzen.
Over the past five years, there have been 17 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 17 renovation/alteration projects (A2) applied for with a total estimated value of $1.9 million.
The Wall Street Journal first reported last month that the properties would sell but did not identify the sellers. The contract date was May 12, 2021.  The Propp family has owned the building since July 1925.
Within a 400-foot radius of 524 Broadway, PincusCo identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, three were sales above $5 million totaling $416.8 million. The most recent of the three was Paceline Equity Partners which bought the retail co-op at 106 Spring Street for $23.9 million from SL Green Realty on May 3, 2021.
Of those six items, three were loans above $5 million totaling $325.2 million. The most recent of the three was AB & Sons Group which borrowed $106.5 million from Wells Fargo Bank secured by the 96,000-square-foot, 17-unit mixed-use building (K4) on 546 Broadway on March 23, 2021, two months before AB & Sons sold that building to Uniqlo for $160 million.

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In the second transaction, Northwood Investors through the entity NW 520 Soho LLC paid $87.8 million to the Propp family through the entity 520 Broadway Company, L.P. for office building (O6) at 520 Broadway in Soho, Manhattan.
The deal closed on June 10, 2021 and was recorded on June 16, 2021.
The property has 48,235 square feet of built space and 0 square feet of additional air rights for a total buildable of 25,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,819 per the PincusCo analysis.
The signatories for the Propp family were Helen Heller and Morris Propp. The signatory for Northwood Investors was Aaron Weitzen.
Over the past five years, there have been 21 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 21 renovation/alteration projects (A2) applied for with a total estimated value of $1.3 million.
The Propp family has owned the building since April 1937.
Within a 400-foot radius of 520 Broadway, PincusCo identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, three were sales above $5 million totaling $416.8 million. The most recent of the three was Paceline Equity Partners which bought the retail co-op at 106 Spring Street for $23.9 million from SL Green Realty on May 3, 2021.
Of those six items, three were loans above $5 million totaling $245.7 million. The most recent of the three was Squire Investments which borrowed $27 million from City National Bank secured by the 11,520-square-foot, six-unit rental (D2) on 43 Crosby Street on October 1, 2020.

Direct link to Acris document. link