Sangmin Han pays $27.5M to Marcus Partners, Dalan for office in Park Avenue South

Sangmin Han of New Jersey through the entity Han 533 LLC paid $27.5 million to Marcus Partners and Dalan Real Estate through the entity 33rd Street TIC Owner LLC for the office buildings (O6) at 10 and 12 East 33rd Street in Park Avenue South, Manhattan.
The deal closed on March 28, 2025 and was recorded on April 16, 2025. The two properties have 56,724 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $484 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 Marcus Partners and Dalan Real Estate was Peter Cameron . The signatory for Sangmin Han was Henry Park. The contract date was March 28, 2025. The sellers bought in 2018 for $54.5 million, in anticipation of TAMI growth.

The sale price was below the most recent recorded loan amount, however it does not appear to be a short sale since the loan, according to a source, was restructured prior to the sale.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Sangmin Han had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Marcus Partners had not purchased any other properties and had not sold any properties over the same time period. The two properties with a total of 56,724 square feet of built space generated revenue of $3.5 million per year or $62 per square foot. The sale price per square foot was $485.

The property

The office buildings in Park Avenue South has 56,724 square feet of built space according to a PincusCo analysis of city data. The parcels have frontage of 50 feet and is 98 feet deep. The zoning is C5-2 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing.  The most recent loan totaled $30.6 million and was provided by Ladder Capital on January 31, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received four DOB violations and $3,080 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 $1 million on this tax lot.

The neighborhood

In Park Avenue South, The majority, or 67 percent of the 9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 16 percent of the space. In sales, Park Avenue South has 2.6 times the average sales volume among other neighborhoods with $704.6 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Park Avenue South has had very little major development activity relative to other neighborhoods.It had 452,258 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

On the tax block of 10 East 33rd Street, PincusCo has identified the owners of seven of the 18 commercial properties representing 1,104,429 square feet of the 1,363,777 square feet. The largest owner is Haddad Brands, followed by Heskel Asset Management and then Dalan Real Estate.
There are no active new building construction projects on this tax block.

The majority, or 91 percent of the 1.4 million square feet of built space are office buildings, with elevator buildings next occupying 3 percent of the space.

The seller

The PincusCo database currently indicates that Dalan Real Estate owned at least 45 commercial properties with 1,361 residential units in New York City with 1,357,345 square feet and a city-determined market value of $358.4 million. (Market value is typically about 50% of actual value.) The portfolio has $40.2 million in debt, borrowed from Infinity Capital Partners and RWN Real Estate Partners. Within the portfolio, the bulk, or 69 percent of the 1,357,345 square feet of built space are elevator properties, with walkup properties next occupying 19 percent of the space. The bulk, or 51 percent of the built space, is in Manhattan, with Brooklyn next at 49 percent of the space.

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