TARGO pays $8.1M to Croman for 10-unit walkup in Chelsea

TARGO Capital Partners through the entity 321 W16 Property Owner LLC paid $8.1 million to Croman Real Estate through the entity 321 W. 16th LLC for the 10-unit residential walkup building (C1) at 321 West 16th Street in Chelsea, Manhattan.
The deal closed on March 12, 2024 and was recorded on March 15, 2024. The property has 5,125 square feet of built space and 1,069 square feet of additional air rights for a total buildable of 6,200 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,580 and the price per buildable square foot is $1,306 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 11, 2005, for $2.2 million. The signatory for Croman Real Estate was Steven Croman. The signatory for TARGO Capital Partners was David Gleitman. The contract date was March 22, 2022.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer TARGO Capital Partners purchased 13 properties in eight transactions for a total of $121.5 million and has no record it sold any properties over the past 24 months.
The seller Croman Real Estate purchased one properties in one transactions for a total of $5 million and sold nine properties in nine transactions for a total of $69.5 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Steven Croman, head officer and Annabelle Santiago, officer. The business entities are Centennial Properties NY and 321 West 16th, LLC.

The property

The residential walkup building with 10 residential units in Chelsea has 5,125 square feet of built space and 1,069 square feet of additional air rights for a total buildable of 6,200 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 63 feet deep with a total lot size of 1,550 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 $4.7 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 one housing violation and $300 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 eight of the 13 commercial properties representing 207,341 square feet of the 250,291 square feet. The largest owner is William Gottlieb Real Estate, followed by Sabet Group and then Michael Besen.
There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 250,291 square feet of built space are hotel buildings, with walkup buildings next occupying 34 percent of the space.

The seller

The PincusCo database currently indicates that Croman Real Estate owned at least 145 commercial properties with 2,586 residential units in New York City with 1,618,682 square feet and a city-determined market value of $593 million. (Market value is typically about 50% of actual value.) The portfolio has $218.9 million in debt, with top three lenders as New York Community Bank, Axos Bank, and Dime Community Bank respectively. Within the portfolio, the bulk, or 80 percent of the 1,618,682 square feet of built space are walkup properties, with elevator properties next occupying 16 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Targo Capital Partners owned at least 18 commercial properties with 239 residential units in New York City with 159,969 square feet and a city-determined market value of $85.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 91 percent of the 159,969 square feet of built space are walkup properties, with elevator properties next occupying 6 percent of the space. They are all located in Manhattan.

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