TPG Angelo Gordon sells retail at base of Extell-developed apartments in Hudson Square

Valentina Gilmore through the entity Charlton LI Realty Group LLC paid $1.4 million to TPG Angelo Gordon through the entity Charlton Street Retail LLC for the leasehold on the retail unit at the 121-unit 70 Charlton Street in Hudson Square, Manhattan. The expected use is cash flowing.
This unit is at the base of the Extell Development and TPG Angelo Gordon-developed condop and rental building.
The deal closed on July 31, 2024 and was recorded on August 27, 2024. The retail unit has 2,828 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $497 per the PincusCo analysis.
The signatory for TPG Angelo Gordon was Adam Schwartz. The signatory for Valentina Gilmore was Valentine Angela Gilmore. The contract date was June 26, 2024. Adam Schwartz is co-managing partner and head of real estate for TPG Angelo Gordon.

An additional buyer may be Raymond Gilmore.

This is a sublease for the retail in a condop building which is subject to a long-term ground lease. The owner of this unit pays the condo board $60,000 a year for the unit’s share of taxes, insurance, ground lease, etc.
The fee is owned by the family of Nina Moinester through a ground lease extending to 2163.

TPG Angelo Gordon and Extell Development developed the 70 Charlton condop building and in August 2016 they created an entity to own the retail separate from the sponsor, Charlton Street Retail LLC, by having the retail unit sign as subtenant.

It’s unclear if Extell owned a stake in the retail unit. There was no transfer value for the 2016 sublease.

According to an amendment filed with the New York State Attorney General, “Of the 121 apartments, 92 apartments (the “Owners”) have shares allocated to them that were offered for sale. The resident manager’s apartment has no shares allocated to it and was sold to the Corporation by the Sponsor. The remaining 29 apartments do not have shares allocated to them nor will they be offered for sale and will be operated by the Corporation as rental housing for tenants qualifying under the inclusionary Housing Program administered by the NYC Department ofHousing and Preservation and Development (the “lH Apartments”)… No shares are allocated to the 2 retail units.”

“Such rent under each Retail Lease is not expected to provide any additional revenue to the Apartment Corporation other than to be sufficient to cover the Retail Space’s pro rata share (based on square footage) of real estate taxes, insurance premiums and other applicable general operating costs of the Property including, without limitation, Ground Lease Rent, incurred by the ApartmentCorporation as of the Cooperative Converrsion Date… The Retail Space will comprise an aggregate of approximately 2,828 square feet at street level on Charlton Street and Vandam Street.”

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Valentina Gilmore had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller TPG Angelo Gordon purchased a $27 million retail property over the same time period. The former owners according to the Department of Housing Preservation and Development includes Elysa Goldman, head officer and Ardi Ibrocevic, site manager. The business entities are Extell Management Services Inc. and 70 Charlton Apartment Corp.

The property

The residential elevator building with 122 residential units in Hudson Square has 224,400 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 101 feet and is 200 feet deep with a total lot size of 15,103 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The property has a 421A exemption that started in 2020 and expires in 2040. The city-designated market value for the property in 2022 is $81.3 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 DOB violation and $3,440 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 25, 2016. 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 five of the eight commercial properties representing 667,801 square feet of the 1,047,124 square feet. The largest owner is Charlton Street Owner Cooperative, followed by Tishman Speyer and then StorageMart.
On the tax block, there was one new building construction project filed totaling 183,395 square feet. It is a 165-unit, 183,395 square-foot residential (R-2) building submitted by Toll Brothers and filed by Joseph Clark with plans filed March 28, 2017 and permitted March 21, 2018.

The majority, or 53 percent of the 1 million square feet of built space are office buildings, with elevator buildings next occupying 21 percent of the space.

Direct link to Acris document. link