Paramount Group, BVK pay $191.5M to Sherwood for Times Square retail

Paramount Group and BVK through the entity 1600 Broadway Retail Owner, LLC paid $191.5 million to Sherwood Equities through the entity Sherwood 1600 Associates for retail condo at 1600 Broadway in Midtown West, Manhattan and property at 1600 Broadway in Midtown West, Manhattan.
The deal closed on February 24, 2022 and was recorded on March 9, 2022.The two properties have 25,288 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $7,572 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 Sherwood Equities was Jeffrey Katz. The signatory for Paramount Group and BVK was Richard Reczka. The Real Deal first reported that the space was set to be sold in December. In February, the partner was released through a press release from Paramount Group. https://therealdeal.com/2021/12/14/retail-space-at-1600-broadway-home-to-mms-world-sells-for-190m/ http://ir.paramount-group.com/press-releases/news-details/2022/BVK-and-Paramount-Joint-Venture-Acquires-MMs-World-Flagship-Store-at-1600-Broadway/default.aspx

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 1600 Broadway.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Paramount Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Sherwood Equities had not purchased any other properties and had not sold any properties over the same time period.

The property

The 1600 Broadway parcel has a total lot size of 25,288 square feet. The city-designated market value for the property in 2022 is $40.1 million.

Violations and lawsuits

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have 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 Midtown West, the majority, or 69 percent of the 82.2 million square feet of built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Midtown West has the 7th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Midtown West is the 3rd most active neighborhood among other neighborhoods. It had 8.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On the tax block of 1600 Broadway, PincusCo has identified the owners of two of the 19 commercial properties representing 939,131 square feet of the 2,466,429 square feet. The two identified owners are SL Green Realty and Dream Hotel Group. There is one active new building construction project totaling 113,000 square feet. It is a 136-unit, 113,000-square-foot R-2 building developed by Rex Hakimian with plans filed January 12, 2022 and it has not been permitted yet.

the majority, or 60 percent of the 1.6 million square feet of built space are hotel buildings, with residential elevator buildings next occupying 30 percent of the space.

Surrounding

Within a 400-foot radius of 1600 Broadway, Pincusco identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, one was in new building development. It was a new building permit application filed on April 28, 2021 for a 112,862-square-foot R-1 building with 401 residential units at 711 7th Avenue.
One of those six items was a sale which SL Green Realty bought the 843,131-square-foot, 10-unit hotel (H1) on 1601 Broadway for $121 million from Friedland Properties on September 30, 2021.
Of those six items, four were loans above $5 million totaling $280.2 million. The most recent of the four was Comjem Associates which borrowed $30 million from Signature Bank secured by the 47,125-square-foot, two-unit office building (O6) on 721 7th Avenue on March 10, 2021.

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