REDA Holdings pays $7.5M to Bridge Investment Group for retail in SoHo

REDA Holdings through the entity REDA W Broadway LLC paid $7.5 million to Bridge Investment Group through the entity BDS II Ny 355 W Broadway LLC for the retail building (O5) at 355 West Broadway in SoHo, Manhattan.
Bridge Investment Group acquired the property as the former lender, in October 2022 through a deed in lieu of foreclosure from Quality Capital USA.
The new deal closed on November 14, 2023 and was recorded on November 21, 2023. The property has 6,690 square feet of built space and 4,272 square feet of additional air rights for a total buildable of 10,955 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,124 and the price per buildable square foot is $686 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 Bridge Investment Group was Jeehae Lee. The signatory for REDA Holdings was Julian Kiguel. The contract date was September 21, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer REDA Holdings purchased six properties in six transactions for a total of $94.7 million and has no record it sold any properties over the past 24 months.
The seller Bridge Investment Group acquired this one property in one transaction for a total of $16.5 million and sold one property in one transaction for a total of $13 million over the same time period. The 6,690-square-foot property generated revenue of $715,947 or $107 per square foot, according to the most recent income and expense figures.

The property

The retail building in SoHo has 6,690 square feet of built space and 4,272 square feet of additional air rights for a total buildable of 10,955 square feet according to a PincusCo analysis of city data. The parcel has frontage of 21 feet and is 100 feet deep with a total lot size of 2,191 square feet. The zoning is M1-5/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $3.6 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 received $500 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial renovation certificate of occupancy on December 12, 2017. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has 2 times the average sales volume among other neighborhoods with $707 million in sales volume in the last two years and is the 20th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 303,357 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 19 commercial properties representing 53,143 square feet of the 154,496 square feet. The largest owner is Zucker Organization, followed by Churchill Real Estate Holdings and then Chong J. Kim.
On the tax block, there were two new building construction projects totaling 24,997 square feet. The largest is a 12,499 square-foot business (B) building submitted by Uri Omari with plans filed December 2, 2019 and it has not been permitted yet. The second largest is a four-unit, 12,498 square-foot residential (R-2) building submitted by Benjamin Gordon with plans filed April 20, 2012 and permitted November 19, 2013.

The majority, or 35 percent of the 154,496 square feet of built space are retail buildings, with office buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that Bridge Investment Group owned at least one commercial property in New York City with 6,690 square feet and a city-determined market value of $3.6 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single retail property. It is located in Manhattan.

The buyer

The PincusCo database currently indicates that REDA Holdings owned at least nine commercial properties with 157 residential units in New York City with 165,721 square feet and a city-determined market value of $61.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 72 percent of the 165,721 square feet of built space are elevator properties, with walkup properties next occupying 21 percent of the space. The bulk, or 55 percent of the built space, is in Manhattan, with Brooklyn next at 45 percent of the space.

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