Slate pays $24.1M to KSL, Hersha for Hampton Inn building in FiDi

Slate Property Group through the entity 320 Pearl Street Propco LLC paid $24.1 million to KSL Capital Partners and Hersha Hospitality Trust through the entity Seaport Hospitality LLC for the Hampton Inn Manhattan-Seaport-Financial District hotel (H3) at 320 Pearl Street in Financial District, Manhattan. KSL Capital acquired Hersha Hospitality Trust through a deal that close late last month.
The deal closed on December 14, 2023 and was recorded on December 19, 2023. The property has 27,356 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $881 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 16, 2007, for $29.2 million. The signatory for KSL Capital Partners and Hersha Hospitality Trust was Ashish Parikh. The signatory for Slate Property Group was David Schwartz. The contract date was October 17, 2023.

To finance the purchase, Slate Property Group through the entity 320 Pearl Street Propco LLC as borrower signed an acquisition loan with lender Mizuho Bank through the entity Mizuho Capital Markets LLC valued at $19.2 million.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Slate Property Group purchased nine properties in eight transactions for a total of $313.4 million and sold three properties in three transactions for a total of $33.1 million over the past 24 months.
The seller KSL Capital Partners had not purchased any other properties and had not sold any properties over the same time period, but has executed a series of refinancings. The former owners according to the Department of Housing Preservation and Development includes Ashish Parikh, head officer and Jay Shah, officer. The business entity is Seaport Hospitality, Llc.

The property

The hotel building in Financial District has 27,356 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 43 feet and is 97 feet deep with a total lot size of 3,731 square feet. The lot is irregular. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The property is in the South Street Seaport Historic District Extension. The city-designated market value for the property in 2022 is $8.5 million. The most recent loan totaled $17.3 million and was provided by Citibank on June 28, 2020.

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 $800 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 Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 4th highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 12.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing 27,356 square feet of the 157,847 square feet. The identified owner is Hersha Hospitality Trust.
There are no active new building construction projects on this tax block.

The majority, or 71 percent of the 157,847 square feet of built space are specialty buildings, with hotel buildings next occupying 17 percent of the space.

The seller

The PincusCo database currently indicates that KSL Capital Partners owned at least four commercial properties in New York City with 300,873 square feet and a city-determined market value of $141.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are hotel properties. The bulk, or 75 percent of the built space, is in Manhattan, with Queens next at 25 percent of the space.

The buyer

The PincusCo database currently indicates that Slate Property Group owned at least 50 commercial properties with 2,824 residential units in New York City with 2,800,770 square feet and a city-determined market value of $694.4 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and PCCP respectively. Within the portfolio, the bulk, or 85 percent of the 2,800,770 square feet of built space are elevator properties, with walkup properties next occupying 11 percent of the space. The bulk, or 59 percent of the built space, is in Manhattan, with Queens next at 24 percent of the space.

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