Investor group pays $49.5M to DNA Development for mixed-use in Midtown West

UPDATED 6:15 p.m., May 30, 2023: The entity 12 West 48th Street LLC paid $49.5 million to DNA Development through the entity Cydonia W48, LLC for the midblock mixed-use building at 12 West 48th Street in Midtown West, Manhattan.
The deal closed on April 1, 2022 and was recorded on April 21, 2022.

The property has 30,845 square feet of built space and 44,432 square feet of additional air rights for a total buildable of 75,310 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,604 and the price per buildable square foot is $657 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 seller bought the property on June 9, 2016, for $37.2 million. The signatory for DNA Development was Peter J. Barack. The signatory for the buyer was removed for privacy reasons. Extell Development sold this property to an unidentified buyer in 2016, as reported by The Real Deal.  TradedNY first reported the sale, with DNA Development as the seller.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller DNA Development had not purchased any other properties and had not sold any properties over the same time period.

The property

The 12 West 48th Street parcel has frontage of 75 feet and is 100 feet deep with a total lot size of 7,531 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 $25.6 million.

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 five DOB violations, $10,171 in ECB penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 11, 2019. 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 82.2 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 7th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Midtown West is the 3rd most active neighborhood among other neighborhoods. It had 8.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 13 of the 36 commercial properties representing 790,425 square feet of the 1,879,636 square feet. The largest owner is Stawski Partners, followed by Jack Elo and then SL Green Realty. There are two active new building construction projects totaling 227,777 square feet. The largest is a 534-unit, 168,897-square-foot R-1 building developed by David Rothstein with plans filed November 20, 2020 and it has not been permitted yet. The second largest is a 58,880-square-foot M building developed by Michael McMenamin with plans filed June 1, 2016 and it has not been permitted yet.

The majority, or 91 percent of the 1.9 million square feet of built space are office buildings, with mixed-use buildings next occupying 5 percent of the space.

Surrounding

Within a 400-foot radius of 12 West 48th Street, PincusCo identified 18 commercial real estate items of interests occurred over the past 24 months.
Of those 18 items, one was in new building development. It was a new building permit application filed on November 20, 2020 for a 168,897-square-foot hotel (R-1) building with 534 residential units at 32 West 48th Street.
Of those 18 items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on February 28, 2022 for the $4 million renovation of 3,000-square-foot B building with zero residential units at 604 5th Avenue.
Of those 18 items, five were sales above $5 million totaling $350 million. The most recent of the five was SJD, LLC which bought the 57,352-square-foot, one-unit office building (O6) on 576 5th Avenue for $101 million from Severn Realty Partners on July 13, 2021.
Of those 18 items, 11 were loans above $5 million totaling $637.3 million. The most recent of the 11 was ELO Organization which borrowed $31 million from Dime Community Bank secured by the 55,613-square-foot, 72-unit office building (O6) on 30 West 47th Street on December 16, 2021.

UPDATED: The name of an individual was removed.

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