Titan Golden Capital pays $196.6M for fee under 645 Madison in Lenox Hill

Titan Golden Capital through the entity Titan Golden Property Investor LLC paid $196.6 million to National Realty and Development and Gibraltar Management through the entity 645 Madison Properties LLC for the fee under the office building at 645 Madison Avenue in Lenox Hill, Manhattan.
The deal closed on April 29, 2022 and was recorded on May 13, 2022. The property has 164,615 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,194 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 National Realty and Development and Gibraltar Management was Loomis J. Grossman, Jr., Rissa W. Grossman, Sharon Herzog, Richard A. Baker, and Lauren S. Pinkus. The Real Deal first reported the sale which followed Titan Golden Capital’s purchase of the ground lease last year.  PincusCo reported on Nightingale and Friedland losing the ground lease to their lender, and then Titan buying the ground lease.

Prior sales and revenue

The 164,615-square-foot property generated revenue of $18.5 million or $113 per square foot, according to the most recent income and expense figures.

The property

The 645 Madison Avenue parcel has frontage of 100 feet and is 90 feet deep with a total lot size of 9,038 square feet. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $89.4 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 two DOB violations and $3,050 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on March 9, 2021. 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 Lenox Hill, the majority, or 56 percent of the 91.2 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Lenox Hill has the 3rd highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Lenox Hill has had very little major development activity relative to other neighborhoods.It had 436,108 square feet of commercial and multi-family construction under development in the last two years, which represents 0.48 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 52 commercial properties representing 813,452 square feet of the 1,538,265 square feet. The largest owner is Crown Acquisitions, followed by Titan Golden Capital and then Alessandro Bonecchi. There are no active new building construction projects on this tax block.

The majority, or 62 percent of the 1.8 million square feet of built space are office buildings, with residential elevator buildings next occupying 34 percent of the space.

Surrounding

Within a 400-foot radius of 645 Madison Avenue, PincusCo identified 11 commercial real estate items of interests occurred over the past 24 months.
Of those 11 items, eight were sales above $5 million totaling $191 million.
Of those 11 items, three were loans above $5 million totaling $114 million. The most recent of the three was Jenel Management which borrowed $80 million from Signature Bank secured by one condo unit in the 264,498-square-foot, two-unit mixed-use building (RC) on 660 Madison Avenue on February 24, 2022.

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