Pacific Urban Investors pays $183M to Related, Orda for 213-unit rental in Chelsea

Pacific Urban Investors through the entity Sierra NYC LLC paid $183 million to Related Companies Orda Management through Armory Place LLC (and another) for the 213-unit rental condo at 125 West 14th Street in Chelsea, Manhattan.
The deal closed on August 8, 2023 and was recorded on August 14, 2023. The property has 180,281 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,015 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 Real Deal reported on the sale last week noting Orda Management and Related co-developed the building in 2002. The Commercial Observer reported the brokers were Newmark’s Doug Harmon, Marcella Fasulo, Avery Silverstein, Adam Doneger, Adam Spies. Pacific Urban assumed a $56 million Fannie Mae loan.

This is the first purchase by Pacific Urban Investors in New York City in at least the past three years.

The PincusCo database currently indicates that Related Companies owned at least 178 commercial properties with 21,405,438 square feet, 9,571 residential units and a city-determined market value of $6 billion. (Market value is typically about 50% of actual value.) The portfolio has $4.7 billion in debt, with top three lenders as Wells Fargo, Carlyle Group, and Deutsche Bank respectively. Within the portfolio, the bulk, or 45 percent of the 21,405,438 square feet of built space are elevator properties, with office properties next occupying 30 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Bronx next at 23 percent of the space.

The property

The parcel has a total lot size of 180,281 square feet. The property has a 421A exemption that started in 2004 and expires in 2024. The city-designated market value for the property in 2022 is $61.3 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 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 $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 10 of the 18 commercial properties representing 131,524 square feet of the 264,804 square feet. The largest owner is John H. Lee, followed by Nathanial Rahav and then Nathaniel Rahav.
On the tax block, there were two new building construction projects totaling 121,483 square feet. The largest is a 61-unit, 61,102 square-foot residential (R-2) building submitted by Matt Baldwin with plans filed May 1, 2020 and it has not been permitted yet. The second largest is a 44-unit, 60,381 square-foot residential (R-2) building submitted by Gemini Rosemont Development and filed by Brian Ferrier with plans filed December 20, 2017 and permitted August 6, 2019.

The majority, or 52 percent of the 264,804 square feet of built space are elevator buildings, with walkup buildings next occupying 34 percent of the space.

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