Slate Property affiliate pays $29.9M to Apple Core Hotels for homeless shelter in Kips Bay

A Slate Property Group affiliate through the entity 161 Lexington Ave Propco LLC paid $29.9 million to Apple Core Hotels through the entity Rutledge Hotel LLC for the 117-unit hotel building at 161 Lexington Avenue in Kips Bay, Manhattan.
To finance the purchase, Slate through the entity 161 Lexington Ave Propco LLC as borrower signed an acquisition loan with lender BCTH Investors valued at $25 million for the 117-unit hotel building at 161 Lexington Avenue in Kips Bay, Manhattan. The lender focuses on loans for homeless shelters. Crain’s covered the shelter earlier this month.

The deal closed on December 29, 2021 and was recorded on January 19, 2022.
The property has 51,953 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $575 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 Apple Core Hotels was William Kohane. The signatory for Slate Property Group was David Schwartz.
Prior to this transaction, the buyer Slate Property Group purchased five properties in four transactions for a total of $193.9 million and sold three properties in three transactions for a total of $193.5 million over the past 24 months.
The seller Apple Core Hotels had not purchased any other properties but sold two properties totaling $80.5 million in 2019.
Over the past five years, there have been 5 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. Of those there was one major renovation application including a certificate of occupancy change (A1) filed with a total estimated value of $1.7 million. There were 4 renovation/alteration projects (A2) applied for with a total estimated value of $2 million. One of the projects were to change the building from a J-1 to a R-1.
David Schwartz is the co-founder and principal at Slate Property Group. 

In Kips Bay, the majority, or 56 percent of the 26.9 million square feet of built space are residential elevator buildings, with specialty buildings next occupying 29 percent of the space. In sales, Kips Bay has 2.5 times the average sales volume among other neighborhoods with $688.3 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, Kips Bay has had very little major development activity relative to other neighborhoods.It had 624,586 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.
On the tax block, the majority, or 30 percent of the 748,702 square feet of built space are residential elevator buildings, with office buildings next occupying 19 percent of the space.
The former owners according to the Department of Housing Preservation and Development includes David Miller, head officer and William Kohane, officer. The business entity was Rutledge Hotel Llc.

Within a 400-foot radius of 161 Lexington Avenue, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
One of those five items was a sale which Evenhar Development bought the 8,294-square-foot, seven-unit mixed-use building (S5) on 152 Lexington Avenue and one other property for $7 million from First Moravian Church and United Brethren Church on September 20, 2021.
Of those five items, four were loans above $5 million totaling $90.4 million. The most recent of the four was DER Realty which borrowed $9.2 million from Investors Bank secured by the 21,236-square-foot, 34-unit rental (D7) on 140 East 31st Street on January 5, 2022.

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