Slate Property Group through the entity 229 West 20th Street Owner LLC as borrower signed a acquisition loan with the unrelated lender Slate Asset Management through the entity SREC REIT Holdings Inc valued at $51.6 million for three properties including the 44-unit residential walkup building (C7) at 301 West 22nd Street in Chelsea, Manhattan, 35-unit residential elevator building (D7) at 300 West 21st Street in Chelsea, Manhattan, and 15-unit residential walkup building (C4) at 229 West 20th Street in Chelsea, Manhattan.
The loan was used to finance the $69.85 million acquisition of the properties, which we reported on in July 2022.
The deal closed on July 11, 2022 and was recorded on August 18, 2022. The three properties have 72,338 square feet of built space and 2,117 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $714 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 Slate Property Group was Martin Nussbaum. The signatory for Slate Asset Management was Michael Quinn.
Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 301 West 22nd Street.
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 properties since September of 2020. In addition, according to city public data, the properties have received two DOB violations, one housing violation, and $2,430 in OATH penalties in the last year.
There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.
On the tax block of 301 West 22nd Street, 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 PincusCo database currently indicates that Slate Property Group owned at least 55 commercial properties in New York City with 1,859,845 square feet and a city-determined market value of $461.4 million. (Market value is typically about 50% of actual value.) The portfolio has $948.1 million in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and Heitman LLC respectively. Within the portfolio, the bulk, or 65 percent of the 1,859,845 square feet of built space are elevator properties, with walkup properties next occupying 18 percent of the space. The bulk, or 57 percent of the built space, is in Manhattan, with Brooklyn next at 31 percent of the space.
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