Slate Property Group pays $69.85M to Zev Feldstein, partners for 94 units walkup in Chelsea

Slate Property Group paid a total of $69.85 million to Zev Feldstein and partners for three rental buildings in Chelsea with a total of 94 units in three separate transactions. The sellers were composed of four entities that each had a 25 percent stake.

In the largest, Slate Property Group through the entity West 22nd Street Owner LLC paid $38.2 million to Zev Feldstein through the entity Felds Realty LLC (and others) for 44-unit residential walkup building (C7) at 301 West 22nd Street in Chelsea, Manhattan.
The deal closed on July 11, 2022 and was recorded on July 26, 2022. The property has 38,802 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $983 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 30, 2013, for $1.8 million. The signatory for Zev Feldstein was David Ornstein. The signatory for Slate Property Group was Martin Nussbaum. The Real Deal reported on the sales earlier this month.

In the second, Slate Property Group through the entity 300 West 21st Street Owner LLC paid $25.9 million to Zev Feldstein through the entity Doral Realty LLC for 35-unit residential elevator building (D7) at 300 West 21st Street in Chelsea, Manhattan.
The deal closed on July 11, 2022 and was recorded on July 26, 2022. The property has 25,924 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $998 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.)

In the third, Slate Property Group through the entity 229 West 20th Street Owner LLC paid $5.8 million to Zev Feldstein through the entity Bgd Associates LLC for 15-unit residential walkup building (C4) at 229 West 20th Street in Chelsea, Manhattan.
The deal closed on July 11, 2022 and was recorded on July 26, 2022. The property has 7,612 square feet of built space and 2,117 square feet of additional air rights for a total buildable of 9,736 square feet according to PincusCo analysis of city data. The sale price per built square foot is $761 and the price per buildable square foot is $595 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 off-market sale was brokered by Steven Vegh of Westwood Realty Associates.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Slate Property Group purchased seven properties in six transactions for a total of $236.9 million and sold two properties in two transactions for a total of $27 million over the past 24 months.
The seller Zev Feldstein had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Zev Feldstein, head officer and Jack Feldstein, officer. The business entity is Felds Realty Llc. The 38,802-square-foot property generated revenue of $2.4 million or $62 per square foot, according to the most recent income and expense figures.

The property

The 301 West 22nd Street parcel has frontage of 84 feet and is 100 feet deep with a total lot size of 8,460 square feet. The zoning is C1-6A which allows for up to 2 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $13.5 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 one DOB violation and $630 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 block

On this tax block, PincusCo has identified the owners of seven of the 32 commercial properties representing 47,369 square feet of the 239,953 square feet. The largest owner is L3C Capital Partners, followed by Parke Leatherman and then Hubb Nyc. There are no active new building construction projects on this tax block.

The majority, or 71 percent of the 206,725 square feet of built space are walkup buildings, with mixed-use buildings next occupying 20 percent of the space.

The buyer

The PincusCo database currently indicates that Slate Property Group owned at least 53 commercial properties in New York City with 1,787,507 square feet and a city-determined market value of $437.5 million. (Market value is typically about 50% of actual value.) The portfolio has $955.9 million in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and Heitman LLC respectively. Within the portfolio, the bulk, or 66 percent of the 1,787,507 square feet of built space are elevator properties, with walkup properties next occupying 16 percent of the space. The bulk, or 55 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.

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