Spatial Equity, Community Access pay $35M for second part of $58M dev site transaction

Spatial Equity Co. and Community Access through the entity St Emeric Development I Housing Development paid $35 million to the Roman Catholic Church of Saint Brigid and Saint Emeric at 181 Avenue D in the East Village, Manhattan. The expected use is ground up development.
The deal closed on July 30, 2024 and was recorded on August 20, 2024.
The signatory for the Roman Catholic Church of Saint Brigid and Saint Emeric was Kevin Nelan. The signatory for Spatial Equity Co. and Community Access was Christopher Lacovara. The contract date was January 17, 2024.
PincusCo reported on this transaction when it went into contract, and when the first sale, for $23 million, was recorded.

According to the purchase and sale agreement dated January 17, 2024, “The purchase price for the Property shall be the sum of Fifty-Eight Million Dollars ($58,000,000.00). The Purchase Price shall be allocated as follows: (a) to Lot A (as hereinafter defined), an amount equal to Thirty-Five Million Dollars ($35,000,000.00) (“Lot A Purchase Price”); and (b) to Lot B (as hereinafter defined), an amount equal to Twenty-Three Million Dollars ($23,000,000.00) (“Lot B Purchase Price”); provided, that if Buyer’s ULURP Application (as hereinafter defined) is approved, Buyer and Seller acknowledge and agree that the Lot B Purchase Price shall increase to Thirty-Three Million Dollars ($33,000,000.00) (“ULURP Lot B Purchase Price”), and Buyer and Seller agree that they will execute and deliver such documents as required…”

The parcel at 181 Avenue D will be divided into two tax lots, in “accordance with the terms of this Agreement to accommodate a phased development to construct affordable and supportive rental housing.”

“Buyer has proposed to construct a 100% affordable rental property on the Land. The proposed development will have approximately 570 rental apartments constructed in two phases, Building A and Building B with approximately 240,000 gross square feet and approximately 190,000 gross square feet, respectively. Both buildings are proposed as supportive housing, with up to 60% of the units targeted to homeless individuals and households, including those with special needs that qualify for supportive services in accordance with New York State’s Empire State Supportive Housing Initiative and New York City’s 15/15 program.”

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Spatial Equity Co. purchased four properties in two transactions for a total of $27.1 million and has no record it sold any properties over the past 24 months.
The seller Roman Catholic Church had not purchased any other properties and sold 25 properties in 20 transactions for a total of $202.5 million over the same time period.

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 not received any significant violations 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 block

There are no active new building construction projects on this tax block.

All properties are elevator.

The seller

The PincusCo database currently indicates that Roman Catholic Church owned at least 144 commercial properties with 886 residential units in New York City with 4,157,136 square feet and a city-determined market value of $740.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 43 percent of the 4,157,136 square feet of built space are specialty properties, with M1 properties next occupying 23 percent of the space. The bulk, or 53 percent of the built space, is in Brooklyn, with Queens next at 26 percent of the space.

The buyer

The PincusCo database currently indicates that Community Access owned at least 16 commercial properties with 359 residential units in New York City with 110,059 square feet and a city-determined market value of $18.5 million. (Market value is typically about 50% of actual value.) The portfolio has $83.4 million in debt, borrowed from NYS Housing Finance Agency and NYC Department of Housing Preservation and Development. Within the portfolio, the bulk, or 90 percent of the 110,059 square feet of built space are elevator properties, with M1 properties next occupying 10 percent of the space. The bulk, or 82 percent of the built space, is in Bronx, with Manhattan next at 10 percent of the space.
The PincusCo database currently indicates that Spatial Equity Co. owned at least five commercial properties in New York City with 17,108 square feet and a city-determined market value of $12.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 67 percent of the 17,108 square feet of built space are M1 properties, with industrial properties next occupying 13 percent of the space. The bulk, or 67 percent of the built space, is in Manhattan, with Brooklyn next at 33 percent of the space.

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