TARGO Capital Partners pays $10M for 21-unit walkup in Nolita

TARGO Capital Partners through the entity 5 Spring Property Owner LLC paid $10 million to R.A. Cohen & Associates and MacArthur Holdings through the entity Aviv Associates, LLC for the 21-unit residential walkup building (C7) at 5 Spring Street in Nolita, Manhattan.
The deal closed on July 26, 2023 and was recorded on August 3, 2023. The property has 9,135 square feet of built space and 7,093 square feet of additional air rights for a total buildable of 16,235 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,094 and the price per buildable square foot is $615 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 August 30, 2011, for $3.9 million. The signatory for R.A. Cohen & Associates and MacArthur Holdings was Ralph Della Cava Jr. and Andrew Katz. The signatory for TARGO Capital Partners was David Gleitman. The contract date was May 5, 2023. Traded NY reported on the sale previously.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer TARGO Capital Partners purchased nine properties in six transactions for a total of $80.2 million and has no record it sold any properties over the past 24 months.
The seller R.A. Cohen & Associates purchased seven properties in three transactions for a total of $19.5 million and sold two properties in two transactions for a total of $11.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Robert Cohen, head officer and Ralph Della Cava, officer. The business entities are Ra Cohen & Associates Inc. and Aviv Associates Llc. The 9,135-square-foot property generated revenue of $644,715 or $71 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 21 residential units in Nolita has 9,135 square feet of built space and 7,093 square feet of additional air rights for a total buildable of 16,235 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 112 feet deep with a total lot size of 2,697 square feet. The lot is irregular. The zoning is C6-2 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential. The city-designated market value for the property in 2022 is $3.8 million.

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 $2,225 in ECB penalties, two housing violations, and $2,875 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 $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 11 of the 22 commercial properties representing 173,933 square feet of the 289,314 square feet. The largest owner is S.W. Management, followed by RFR Holding and then Peter Moy.
There are no active new building construction projects on this tax block.

The majority, or 31 percent of the 289,314 square feet of built space are walkup buildings, with mixed-use buildings next occupying 22 percent of the space.

The seller

The PincusCo database currently indicates that R.A. Cohen & Associates owned at least 11 commercial properties with 187 residential units in New York City with 150,848 square feet and a city-determined market value of $56.4 million. (Market value is typically about 50% of actual value.) The portfolio has $44.6 million in debt, with top three lenders as JPMorgan Chase, First National Bank of Long Island, and Dime Community Bank respectively. Within the portfolio, the bulk, or 54 percent of the 150,848 square feet of built space are elevator properties, with walkup properties next occupying 38 percent of the space. The bulk, or 97 percent of the built space, is in Manhattan, with Brooklyn next at 3 percent of the space.
The PincusCo database currently indicates that MacArthur Holdings owned at least four commercial properties with eight residential units in New York City with 85,285 square feet and a city-determined market value of $26.6 million. (Market value is typically about 50% of actual value.) The portfolio has $7 million in debt, borrowed from Dime Community Bank. Within the portfolio, the bulk, or 92 percent of the 85,285 square feet of built space are retail properties, with walkup properties next occupying 8 percent of the space. The bulk, or 83 percent of the built space, is in Manhattan, with Brooklyn next at 17 percent of the space.

The buyer

The PincusCo database currently indicates that TARGO Capital Partners owned at least 10 commercial properties with 101 residential units in New York City with 86,313 square feet and a city-determined market value of $52.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 93 percent of the 86,313 square feet of built space are walkup properties, with mixed-use properties next occupying 7 percent of the space. They are all located in Manhattan.

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