The Flag makes first NYC purchase paying Davean Holdings, Meadow Partners $48.9M

The Flag through the entity The Flag MacDougal Street LLC paid Davean Holdings and Meadow Partners through the entity MP Davean Macdougal Venture LLC $48.9 million for two 36-unit residential walkup buildings (C7) at 103 and 105 MacDougal Street in Greenwich Village, Manhattan.

The deal closed on June 15, 2023 and was recorded on June 21, 2023. The two properties have 39,648 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,233 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 sellers bought the property for $22.25 million in June 2020.
This is an entity level purchase, not a deed transfer. The buyer, The Flag, is a German company owned by the Muhr family, including Rudolf Muhr, Sabine Muhr and Eike Julia Muhr. The Real Deal reported the sale but did not identify the buyer, and reported that David Ash of Walker & Dunlop represented the buyer.

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 105 MacDougal Street.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer The Flag had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Davean Holdings purchased 19 properties in 16 transactions for a total of $119.7 million and sold three properties in three transactions for a total of $12.6 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes David Llyod, head officer and Ben Schwadel, agent. The business entity is 103-105 Macdougal Street LLC. The two properties with a total of 39,648 square feet of built space generated revenue of $2.6 million per year or $66 per square foot. The sale price per square foot was $1,233.

The property

The residential walkup building with 36 residential units in Greenwich Village has 39,648 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 134 feet deep with a total lot size of 3,373 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the South Village Historic District. The city-designated market value for the property in 2022 is $7.9 million. The most recent loan totaled $26 million and was provided by Sterling National Bank on August 24, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation, $5,090 in ECB penalties, 11 housing violations, two housing violations, and $6,240 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 $1 million on this tax lot.

The block

On the tax block of 105 Mac Dougal Street, PincusCo has identified the owners of seven of the 16 commercial properties representing 75,094 square feet of the 144,511 square feet. The largest owner is Superior Management, followed by Meadow Partners and then Kushner Companies.
There are no active new building construction projects on this tax block.

The majority, or 90 percent of the 144,511 square feet of built space are walkup buildings, with mixed-use buildings next occupying 10 percent of the space.

The seller

The PincusCo database currently indicates that Meadow Partners owned at least 35 commercial properties with 431 residential units in New York City with 1,975,309 square feet and a city-determined market value of $444.3 million. (Market value is typically about 50% of actual value.) The portfolio has $668.2 million in debt, with top three lenders as Fortress Investment Group, Deutsche Pfandbriefbank, and Sterling National Bank respectively. Within the portfolio, the bulk, or 61 percent of the 1,975,309 square feet of built space are office properties, with elevator properties next occupying 14 percent of the space. The bulk, or 68 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.
The PincusCo database currently indicates that Davean Holdings owned at least 20 commercial properties with 180 residential units in New York City with 167,302 square feet and a city-determined market value of $56.6 million. (Market value is typically about 50% of actual value.) The portfolio has $7.1 million in debt, borrowed from Meadow Partners. Within the portfolio, the bulk, or 58 percent of the 167,302 square feet of built space are walkup properties, with mixed-use properties next occupying 36 percent of the space. The bulk, or 50 percent of the built space, is in Manhattan, with Brooklyn next at 50 percent of the space.

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