Prime Group Holdings pays $22.9M to Downtown Capital for industrial in Harlem

Prime Group Holdings through the entity Prime Storage Fifth Avenue Harlem, LLC paid $22.9 million to Downtown Capital Partners through the entity 2350 Fifth Avenue Corp. for three industrial properties including at 12 West 142nd Street (E7) and 2350 Fifth Avenue (E7) in Harlem, Manhattan.
The deal closed on March 15, 2023 and was recorded on March 17, 2023. The three properties have 141,962 square feet of built space and 17,186 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $160 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 Downtown Capital Partners was Gary M. Katz. The signatory for Prime Group Holdings was Robert Moser. Prime Group Holdings CEO is Robert Moser. Unrelated to this transaction, Gary Katz of Downtown Capital struck a deal to buy All Year Management properties, the Wall Street Journal reported in 2022.

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 12 West 142nd Street.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Prime Group Holdings had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Downtown Capital Partners had not purchased any other properties and sold three properties in three transactions for a total of $9.1 million over the same time period.

The property

The 12 West 142nd Street parcel has frontage of 245 feet and is 199 feet deep with a total lot size of 53,954 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $11.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. 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 Harlem, the bulk, or 44 percent of the 79.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 31 percent of the space. In sales, Harlem has 2.2 times the average sales volume among other neighborhoods with $756 million in sales volume in the last two years and is the 20th highest in Manhattan. For development, Harlem is the 8th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

there are no active new building construction projects on this tax block.

all properties are industrial.

The buyer

The PincusCo database currently indicates that Prime Group Holdings owned at least six commercial properties in New York City with 353,663 square feet and a city-determined market value of $44.1 million. (Market value is typically about 50% of actual value.) The portfolio has $147 million in debt, borrowed from Slate Asset Management. Within the portfolio, all identified are industrial properties. The bulk, or 49 percent of the built space, is in Queens, with Bronx next at 28 percent of the space.

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