Pontegadea pays $487.5M to Carmel Partners for 483-unit rental in FiDi, assumes $272M loan

Pontegadea through the entity Ponte Gadea Dutch, LLC paid $487.5 million to Carmel Partners through the entity CP V TS Fulton Owner, LLC for the 483-unit residential elevator building (D8) at 19 Dutch Street in Financial District, Manhattan. To finance the purchase, Pontegadea assumed a loan with an original principal of $272 million. The Real Deal reported in July that the deal was in contract for approximately $500 million, 

Pontegadea is the family office for the Spanish Ortega family that owns fashion brand Zara.

The deal closed on September 23, 2022 and was recorded on September 30, 2022. The property has 440,553 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,106 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.)
Carmel Partners bought the property on September 22, 2014, for $171 million, then constructed the building. The signatory for Carmel Partners was Matthew Golden. The signatory for Pontegadea was Patricia Alonso Gonzalez.

The Real Deal reported in March that Carmel Partners had put the property on the market, seeking approximately $500 million.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Pontegadea had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Carmel Partners purchased six properties in two transactions for a total of $249.5 million and sold four properties in two transactions for a total of $243.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Andy Sands, head officer and Blerina Avdili, site manager. The business entities are Grep 250n10, Llc and Cp V Ts Fulton Owner, Llc.

The property

The 19 Dutch Street parcel has frontage of 101 feet and is 83 feet deep with a total lot size of 8,320 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2020 and expires in 2040. The city-designated market value for the property in 2022 is $116.6 million.

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 received one DOB violation and $100 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 29, 2018. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 12 of the 27 commercial properties representing 247,325 square feet of the 1,448,156 square feet. The largest owner is Metro Loft Management, followed by Arker Companies and then Hidrock Properties.
There are no active new building construction projects on this tax block.

The majority, or 43 percent of the 1.2 million square feet of built space are elevator buildings, with office buildings next occupying 41 percent of the space.

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