Stellar Services pays $36M for office building in Midtown West, sold in 2019 for $37M

The technology development firm Stellar Services through the entity Red Currant Management LLC paid $36 million to Kenneth Fishel of Renaissance Properties through the entity Kenneth Lawrence Company LLC for the office building (O6) at 62 West 45th Street in Midtown West, Manhattan.
The deal closed on June 27, 2022 and was recorded on July 8, 2022. The property has 44,063 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $817 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.)
Fishel bought the building for $37.25 million in 2019.

Prior sales and revenue

The 44,063-square-foot property generated revenue of $1.8 million or $40 per square foot, according to the most recent income and expense figures.

The property

The 62 West 45th Street parcel has frontage of 40 feet and is 100 feet deep with a total lot size of 4,067 square feet. The zoning is C6-4.5 which allows for up to 12 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $6.9 million. The most recent loan totaled $15 million and was provided by First Republic Bank on July 15, 2019.

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 $180 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 neighborhood

In Midtown West, the majority, or 69 percent of the 81.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Midtown West is the 2nd most active neighborhood among other neighborhoods. It had 11.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 11 of the 28 commercial properties representing 1,089,323 square feet of the 2,081,637 square feet. The largest owner is RXR Realty, followed by Keck Seng Investments and then Edmond M. Safra. There is one active new building construction project totaling 138,345 square feet. It is a 310-unit, 138,345-square-foot R-1 building developed by Morris Moinian with plans filed October 2, 2015 and permitted October 6, 2021.

the majority, or 49 percent of the 1.6 million square feet of built space are office buildings, with hotel buildings next occupying 45 percent of the space.

Surrounding

Within a 400-foot radius of 62 West 45th Street, Pincusco identified seven commercial real estate items of interests occurred over the past 24 months.
Of those seven items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on April 20, 2022 for the $1.7 million renovation of zero-square-foot B building with zero residential units at 1155 6th Avenue.
Of those seven items, two were sales above $5 million totaling $129.3 million. The most recent of the two was Magna Hospitality Group which bought the 126,000-square-foot rental (H6) on 30 West 46th Street for $88.5 million from Concord Hospitality on October 6, 2021.
Of those seven items, four were loans above $5 million totaling $205.1 million. The most recent of the four was APF Properties which borrowed $48 million from New York Community Bank secured by the 69,481-square-foot, 20-unit office building (O6) on 1156 Avenue Of The Amer on May 19, 2022.

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