Portfolio4 LLC through Tri-Star Equities pays $23.5M to Vornado for retail in Soho

Portfolio4 LLC as managed by Tri-Star Equities paid $23.5 million to Vornado Realty Trust through the entity 484-486 Broadway Owner LLC for the mixed-use retail building (O5) at 486 Broadway in Soho, Manhattan.
The deal closed on December 15, 2022 and was recorded on December 27, 2022. The property has 30,031 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $783 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 seller bought the property on November 1, 2004, for $14 million. The signatory for Vornado Realty Trust was Steven Borenstein. The signatory for Portfolio4 LLC and Tri-Star Equities was Paul Xuereb. Tri-Star Equities is a management company. The sale was brokered by James Nelson, Brent Glodowski and Kate Kabili of Avison Young.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Portfolio4 LLC purchased one properties in one transactions for a total of $6.2 million and has no record it sold any properties over the past 24 months.
The seller Vornado Realty Trust had not purchased any other properties and sold 16 properties in 10 transactions for a total of $468 million over the same time period. The 30,031-square-foot property generated revenue of $2.9 million or $97 per square foot, according to the most recent income and expense figures.

The property

The 486 Broadway parcel has frontage of 48 feet and is 99 feet deep with a total lot size of 4,796 square feet. The lot is irregular. The zoning is M1-5B which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $15.4 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 $1,250 in ECB penalties 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 block

On this tax block, PincusCo has identified the owners of seven of the 26 commercial properties representing 271,543 square feet of the 419,431 square feet. The largest owner is Zada Realty, followed by Wing Yee and then Vornado Realty Trust.
There are no active new building construction projects on this tax block.

The majority, or 40 percent of the 387,586 square feet of built space are office buildings, with retail buildings next occupying 26 percent of the space.

The seller

The PincusCo database currently indicates that Vornado Realty Trust owned at least 59 commercial properties in New York City with 15,509,684 square feet and a city-determined market value of $6.1 billion. (Market value is typically about 50% of actual value.) The portfolio has $5.1 billion in debt, with top three lenders as JPMorgan Chase, Goldman Sachs, and Landesbank Baden-Wurttemberg respectively. Within the portfolio, the bulk, or 77 percent of the 15,509,684 square feet of built space are office properties, with retail properties next occupying 13 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Bronx next at 4 percent of the space.

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