TARGO Capital pays $13.8M for two walkups in Chelsea

TARGO Capital Partners through the entity 225-227 W20 Property Owner LLC paid $13.8 million to Samuel Frisch and Nancy Frisch through the entity 225 West 20th Street, LLC for the 20-unit walkup building (C7) at 227 West 20th Street and the adjacent 10-unit walkup building (C4) at 225 West 20th Street, both in Chelsea, Manhattan.
The deal closed on March 15, 2023 and was recorded on March 21, 2023. The two properties have 16,709 square feet of built space and 291 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $822 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 signatory for Samuel Frisch and Nancy Frisch was Sandor Krauss. The signatory for TARGO Capital Partners was David Gleitman.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 225 West 20th Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer TARGO Capital Partners purchased eight properties in six transactions for a total of $74.8 million and has no record it sold any properties over the past 24 months.
The seller Samuel Frisch had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Samuel Frisch, head officer and Nancy Frisch, officer. The business entity is 225 West 20th St Llc. The two properties with a total of 16,709 square feet of built space generated revenue of $763,851 per year or $46 per square foot. The sale price per square foot was $823.

The property

The 225 West 20th Street parcel has frontage of 25 feet and is 77 feet deep with a total lot size of 1,944 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 $4.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $950 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 block

On the tax block of 225 West 20th Street, PincusCo has identified the owners of 11 of the 39 commercial properties representing 104,679 square feet of the 339,702 square feet. The largest owner is Witnick Real Estate Partners, followed by Stellar Management and then Robert Malta.
There are no active new building construction projects on this tax block.

The majority, or 63 percent of the 339,702 square feet of built space are walkup buildings, with elevator buildings next occupying 18 percent of the space.

The buyer

The PincusCo database currently indicates that Targo Capital Partners owned at least seven commercial properties in New York City with 59,374 square feet and a city-determined market value of $40 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 90 percent of the 59,374 square feet of built space are walkup properties, with mixed-use properties next occupying 10 percent of the space. They are all located in Manhattan.

Direct link to Acris document. link