RFR Holding acquires interest from partner CP Capital valued at $19.8M for retail in NoHo

RFR Holding through the entity RF 350 LP LLC acquired an interest from its partner CP Capital through the entity Recap 11 Bond Investment, L.P. valued at $19.8 million for the retail building (K2) at 11 Bond Street, also known as 350 Lafayette Street, in NoHo, Manhattan.
The deal closed on December 8, 2023 and was recorded on December 15, 2023. The property has 14,925 square feet of built space and 1,368 square feet of additional air rights for a total buildable of 16,295 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,328 and the price per buildable square foot is $1,216 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.)
RFR Holding and CP Capital bought the property, a former women’s shelter, on July 16, 2015, for $26 million. This is an entity-level purchase, and RFR is already the identified owner. RFR Holding executed a similar transaction with CP Capital, then known as HQ Capital, in 2019 when RFR bought an 80% stake from CP Capital for $56.4 million at 281 Park Avenue South.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer RFR Holding purchased two properties in two transactions for a total of $322.5 million and sold or turned over three properties in two transactions for a total of $294 million over the past 24 months.
The seller CP Capital had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail building in NoHo has 14,925 square feet of built space and 1,368 square feet of additional air rights for a total buildable of 16,295 square feet according to a PincusCo analysis of city data. The parcel has frontage of 115 feet and is 25 feet deep with a total lot size of 3,259 square feet. The lot is irregular. 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 NoHo Historic District. The city-designated market value for the property in 2022 is $2.3 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 two DOB violations and $700 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial rehab certificate of occupancy on August 29, 2019. On the lot, there was one active major alteration construction project for a 11,432 square-foot M building. The project was submitted by Danny Jaramillo with plans filed November 30, 2015 and permitted July 9, 2018.

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 $271.9 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 403,003 square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 24 commercial properties representing 198,694 square feet of the 378,821 square feet. The largest owner is ZG Capital Partners, followed by Shulsky Properties and then RWN Management.
On the tax block, there was one new building construction project filed totaling 6,758 square feet. It is a three-unit, 6,758 square-foot residential (R-2) building submitted by David Smilow with plans filed December 22, 2015 and it has not been permitted yet.

The majority, or 65 percent of the 378,821 square feet of built space are office buildings, with mixed-use buildings next occupying 13 percent of the space.

The buyer

The PincusCo database currently indicates that RFR Holding owned at least 15 commercial properties in New York City with 2,856,831 square feet and a city-determined market value of $1.2 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 88 percent of the 2,856,831 square feet of built space are office properties, with hotel properties next occupying 8 percent of the space. They are all located in Manhattan.

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