Reuben Brothers pays $50M to Vornado for three retail locations in SoHo, NoHo, part of $124 million portfolio

Reuben Brothers paid $50 million to Vornado Realty Trust for three retail locations in SoHo, at 443 Broadway, 692 Broadway and 148-150 Spring Street, in three separate transactions. Reuben Brothers along with Jeff Sutton recently sold the commercial cooperative unit at 747 Madison Avenue for $135 million to James Dyson’s investment company.

These three transactions are part of a $124 million sale that The Real Deal reported on earlier that also includes properties such as 510 Fifth Avenue, where the transfers have not yet been recorded.

In the largest, Reuben Brothers through the entity 443 Broadway Propco LLC, paid Vornado through the entity Going Away LLC $20 million for the 18,139-square-foot retail condominium at the base of the building also known as 22 Mercer Street.

In the second transaction, Reuben Brothers through the entity 692 Broadway Propco LLC paid $15 million to Vornado through the entity Vornado 692 Broadway LLC for five retail and commercial condos at the Silk Building at 692 Broadway in NoHo, Manhattan. The deal closed on August 10, 2023 and was recorded on August 17, 2023. The five properties have 32,748 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $458 per the PincusCo analysis.

In the third transaction, Reuben Brothers through the entity 148-150 Spring Propco LLC paid $15 million to Vornado through the entity 148 Spring Street LLC for the mixed-use building (K4) at 150 Spring Street in SoHo, Manhattan and mixed-use building (K2) at 148 Spring Street in SoHo, Manhattan. The deal closed on August 10, 2023 and was recorded on August 17, 2023. The two properties have 12,368 square feet of built space and 3,632 square feet of additional air rights for a total buildable of 16,000 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,212 and the price per buildable square foot is $937 per the PincusCo analysis.

The contract date for each transaction was July 18, 2023. No debt was recorded at the time the purchases were recorded.

(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 neighborhood

In NoHo, The majority, or 55 percent of the 3.8 million square feet of commercial built space are office buildings, with elevator buildings next occupying 14 percent of the space. In sales, NoHo has had very little sales volume relative to other neighborhoods with $296.4 million in sales volume in the last two years. For development, NoHo has had very little major development activity relative to other neighborhoods.It had 271,694 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On the tax block of 692 Broadway, PincusCo has identified the owners of 10 of the 17 commercial properties representing 131,130 square feet of the 174,461 square feet. The largest owner is Anthony C. Marano, followed by Anthony M. Marano and then CBSK Ironstate.
On the tax block, there was one new building construction project filed totaling 98,788 square feet. It is a 98,788 square-foot business (B) building submitted by SK Development and filed by Scott Shnay with plans filed January 7, 2021 and permitted December 8, 2022.

The majority, or 42 percent of the 174,461 square feet of built space are office buildings, with mixed-use buildings next occupying 28 percent of the space.

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