Sky Management pays $17M to Time Equities for 23-unit walkup in Greenwich Village

Sky Management through the entity 240 Sull LLC paid $17 million to Time Equities through the entity 240 Sullivan Street LLC for the 23-unit residential walkup building at 240 Sullivan Street in Greenwich Village, Manhattan.
The deal closed on June 1, 2022 and was recorded on June 21, 2022. The property has 14,654 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,160 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 Time Equities was Francis Greenburger. The signatory for Sky Management was Jonathan Ohebshalom.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Sky Management sold two properties in two transactions for a total of $72.6 million over the past 24 months.
The seller Time Equities had not purchased any other properties and sold one properties in one transactions for a total of $3.8 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Francis Greenburger, head officer and Dragan Stefanovic, site manager. The business entity is 240 Sullivan Street Llc. The 14,654-square-foot property generated revenue of $936,889 or $64 per square foot, according to the most recent income and expense figures.

The property

The 240 Sullivan Street parcel has frontage of 25 feet and is 95 feet deep with a total lot size of 2,375 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the South Village Historic District. The city-designated market value for the property in 2022 is $4.3 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 $50 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 Greenwich Village, the bulk, or 35 percent of the 34 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Greenwich Village has the 10th highest sale turnover among other neighborhoods in the city with $1.3 billion in sales volume in the last two years. For development, Greenwich Village has had very little major development activity relative to other neighborhoods.It had 445,850 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 32 commercial properties representing 226,153 square feet of the 491,594 square feet. The largest owner is New York University, followed by Salvatore Petrillo and then Kushner Companies. There are no active new building construction projects on this tax block.

The majority, or 53 percent of the 487,554 square feet of built space are residential walkup buildings, with hotel buildings next occupying 31 percent of the space.

The buyer

The PincusCo database currently indicates that Sky Management owned at least 17 commercial properties with 319,076 square feet and a city-determined market value of $91.9 million. (Market value is typically about 50% of actual value.) The portfolio has $123.3 million in debt, with top three lenders as MF1 Capital, M&T Bank, and Signature Bank respectively. Within the portfolio, the bulk, or 56 percent of the 319,076 square feet of built space are elevator properties, with walkup properties next occupying 42 percent of the space. They are all located in Manhattan.

Surrounding

Within a 400-foot radius of 240 Sullivan Street, PincusCo identified seven commercial real estate items of interests occurred over the past 24 months.
One of those seven items was a sale which Davean Holdings bought the 4,163-square-foot, nine-unit rental (C5) on 235 Sullivan Street for $5.1 million from Andre Grabowicz on October 8, 2021.
Of those seven items, five were loans above $5 million totaling $97.9 million. The most recent of the five was Meadow Partners which borrowed $43.5 million from Fortress Investment Group secured by the 9,577-square-foot, six-unit mixed-use building (S5) on 231 Sullivan Street and 11 other properties on January 4, 2022.

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