RFR Holding pays $31.5M to TA Realty for retail in SoHo

RFR Holding through the entity 102 Greene LLC paid $31.5 million to TA Realty and SL Green Realty through the entity 102 Greene Fee Owner LLC for the four-story mixed-use building (K4) at 102 Greene Street in SoHo, Manhattan.
The deal closed on October 20, 2022 and was recorded on October 24, 2022. The property has 9,339 square feet of built space and 3,150 square feet of additional air rights for a total buildable of 12,500 square feet according to PincusCo analysis of city data. The sale price per built square foot is $3,372 and the price per buildable square foot is $2,520 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 April 24, 2017, for $43.5 million. The signatory for TA Realty was Scott L. Dalrymple. The signatory for RFR Holding was Richard Froom. SL Green bought 102 Greene Street in 2014 for $32.5 million then sold it in 2017 for $43.5 million to TA Realty.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer RFR Holding purchased one property in one transaction for a total of $291 million and sold three properties in two transactions for a total of $294 million over the past 24 months.
The seller TA Realty had not purchased any other properties and had not sold any properties over the same time period. The 9,339-square-foot property generated revenue of $1.4 million or $148 per square foot, according to the most recent income and expense figures.

The property

The 102 Greene Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is M1-5A 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 $7.5 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 $2,250 in ECB penalties and $2,950 in OATH 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 neighborhood

In SoHo, the bulk, or 46 percent of the 9.4 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 15 percent of the space. In sales, SoHo has 1.5 times the average sales volume among other neighborhoods with $535.6 million in sales volume in the last two years and is the 26th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 255,824 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. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 13 of the 28 commercial properties representing 233,375 square feet of the 354,578 square feet. The largest owner is SL Green Realty, followed by Carl Stefan Erling Persson and then Thor Equities.
There are no active new building construction projects on this tax block.

The majority, or 68 percent of the 305,891 square feet of built space are office buildings, with mixed-use buildings next occupying 20 percent of the space.

The buyer

The PincusCo database currently indicates that RFR Holding owned at least 24 commercial properties in New York City with 3,202,629 square feet and a city-determined market value of $1.3 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 92 percent of the 3,202,629 square feet of built space are office properties, with hotel properties next occupying 6 percent of the space. They are all located in Manhattan.

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