Storage Post signs $40.3M loan with Heitman Capital for industrial in Alphabet City
444 East 10th Street (Credit - Google)
Storage Post through the entity Storage Post/444 East 10th Street, LLC as borrower signed an acquisition loan with lender Heitman Capital through the entity Heitman Credit Acquisition XX, LLC valued at $40.3 million for the industrial building (E7) at 436 East 10th Street in Alphabet City, Manhattan.
The deal closed on April 25, 2022 and was recorded on July 14, 2022. The property has 92,470 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $435 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 owner bought the property on April 25, 2022, for $61 million.
Prior sales and revenue
The 92,470-square-foot property generated revenue of $2.2 million or $24 per square foot, according to the most recent income and expense figures.
The property
The 436 East 10th Street parcel has frontage of 148 feet and is 92 feet deep with a total lot size of 13,210 square feet. The lot is irregular. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $12 million.
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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, $640 in ECB penalties, and $1,240 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 Alphabet City, the majority, or 53 percent of the 15.5 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 27 percent of the space. In sales, Alphabet City has had very little sales volume relative to other neighborhoods with $207.4 million in sales volume in the last two years. For development, Alphabet City has had very little major development activity relative to other neighborhoods.It had 201,262 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of four of the 16 commercial properties representing 123,614 square feet of the 320,830 square feet. The largest owner is Storage Post, followed by Richard Young and then Croman Real Estate.
There are no active new building construction projects on this tax block.
The majority, or 34 percent of the 432,213 square feet of built space are residential elevator buildings, with industrial buildings next occupying 22 percent of the space.
Surrounding
Within a 400-foot radius of 436 East 10th Street, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Neighborhood Restore HDFC borrowed $18.7 million from Local Initiatives Support Corporation secured by the 14,653-square-foot, 24-unit co-op (C6) on 406 East 10th Street and two other properties on July 20, 2021.
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