NYU pays $97.5M to Sand Associates for office in NoHo

New York University paid $97.5 million to Sand Associates for the office building (O5) at 400 Lafayette Street in NoHo, Manhattan.
The deal closed on April 18, 2023 and was recorded on April 20, 2023. The property has 93,048 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,047 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 Sand Associates was Richard Flaster and Lauren Vigeland. The signatory for New York University was Martin S. Dorph.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer New York University purchased one property in one transaction for a total of $122 million and has no record it sold any properties over the past 24 months.
The seller Sand Associates had not purchased any other properties and had not sold any properties over the same time period. The 93,048-square-foot property generated revenue of $8.6 million or $92 per square foot, according to the most recent income and expense figures.

The property

The office building in NoHo has 93,048 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 122 feet and is 140 feet deep with a total lot size of 18,060 square feet. The lot is irregular. The property is in the NoHo Historic District. The city-designated market value for the property in 2022 is $42.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $1,750 in OATH penalties in the last year.

Development

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 NoHo, The majority, or 55 percent of the 3.8 million square feet of commercial built space are office buildings, with elevator buildings next occupying 14 percent of the space. In sales, NoHo has had very little sales volume relative to other neighborhoods with $207.3 million in sales volume in the last two years. For development, NoHo has had very little major development activity relative to other neighborhoods.It had 281,853 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 15 commercial properties representing 639,174 square feet of the 1,165,049 square feet. The largest owner is Superior Management, followed by Sol Goldman Investments and then New York University.
There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 1.2 million square feet of built space are office buildings, with elevator buildings next occupying 15 percent of the space.

The buyer

The PincusCo database currently indicates that New York University owned at least 93 commercial properties with 2,705 residential units in New York City with 12,041,232 square feet. Within the portfolio, the bulk, or 46 percent of the 12,041,232 square feet of built space are specialty properties, with hotel properties next occupying 41 percent of the space. The bulk, or 91 percent of the built space, is in Manhattan, with Brooklyn next at 9 percent of the space.

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