Spear Street Capital pays $48.1M to Intercontinental, KPG for office, retail in SoHo

Spear Street Capital through the entity 2 Crosby Owner LLC paid $48.1 million to Intercontinental Real Estate and KPG Funds through the entity 30 Howard Street Owner Ny, LLC for the office and retail building (O5) at 30-32 Howard Street in SoHo, Manhattan. The building has an alternate address of 2 Crosby and was marketed as Howard X Crosby.
The deal closed on October 5, 2023 and was recorded on October 12, 2023. The property has 30,034 square feet of built space and 181 square feet of additional air rights for a total buildable of 30,230 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,601 and the price per buildable square foot is $1,591 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.)
Intercontinental Real Estate and KPG Funds, then known as K Property Group, bought the property January 9, 2018, for $46 million.
The signatory for Intercontinental Real Estate and KPG Funds was Thomas R. Taranto Jr. The signatory for Spear Street Capital was Rajiv Patel.

The contract date was September 14, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Spear Street Capital had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Intercontinental Real Estate had not purchased any other properties and had not sold any properties over the same time period.

The property

The office building in SoHo has 30,034 square feet of built space and 181 square feet of additional air rights for a total buildable of 30,230 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 119 feet deep with a total lot size of 6,046 square feet. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $12.8 million. The most recent loan totaled $28.5 million and was provided by Webster Bank on January 13, 2021.

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 six DOB violations and $350 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial rehabilitation certificate of occupancy on July 23, 2018. 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 SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has 1.9 times the average sales volume among other neighborhoods with $692.2 million in sales volume in the last two years and is the 20th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 325,093 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 122,499 square feet of the 230,963 square feet. The largest owner is United American Land, followed by Tokyo Trust Capital and then KPG Funds.
There are no active new building construction projects on this tax block.

The majority, or 67 percent of the 230,963 square feet of built space are office buildings, with retail buildings next occupying 21 percent of the space.

The seller

The PincusCo database currently indicates that Intercontinental Real Estate owned at least one commercial property with one residential unit in New York City with 30,034 square feet and a city-determined market value of $12.8 million. (Market value is typically about 50% of actual value.) The portfolio has $28.5 million in debt, borrowed from Webster Bank. The portfolio consists of at least a single office property. It is located in Manhattan.

The buyer

The PincusCo database currently indicates that Spear Street Capital owned at least two commercial properties in New York City with 226,536 square feet and a city-determined market value of $122 million. (Market value is typically about 50% of actual value.) The portfolio has $212.1 million in debt, borrowed from Bank of America. Within the portfolio, the bulk, or 66 percent of the 226,536 square feet of built space are office properties, with retail properties next occupying 34 percent of the space. They are all located in Manhattan.

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