Wall Bridge Properties pays $16.8M to Churchill for office in Tribeca

The entity Wall Bridge Properties LLC with unknown ownership paid $16.8 million to Churchill Real Estate Holdings through the entity Churchill 381 Broadway LLC for the office building (O5) at 381 Broadway in Tribeca, Manhattan.
The deal closed on April 13, 2023 and was recorded on April 18, 2023. The property has 18,300 square feet of built space and 4,792 square feet of additional air rights for a total buildable of 23,080 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $915 and the price per buildable square foot is $725 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.)
Churchill acquired the property on August 30, 2021, at a recorded valuation of $6.5 million, but the property had more than $20 million in defaulted debt. The signatory for Churchill Real Estate Holdings was Sorabh Maheshwari. The contract date was March 29, 2023. The sale amount is slightly above the most recent loan from iBorrow REIT which totaled $16.736 million. Churchill acquired ownership of the property in 2021 after acquiring the loan and pursuing a foreclosure. The prior owner entity had been placed into bankruptcy to hold off the foreclosure sale.

Maurice Suede of Cushman & Wakefield represented the seller.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Wall Bridge Properties had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Churchill Real Estate Holdings purchased one property in one transaction for a total of $6.5 million and sold two properties in two transactions for a total of $32.4 million over the same time period. The 18,300-square-foot property generated revenue of $900,049 or $49 per square foot, according to the most recent income and expense figures.

The property

The office building in Tribeca has 18,300 square feet of built space and 4,792 square feet of additional air rights for a total buildable of 23,080 square feet according to a PincusCo analysis of city data. The parcel has frontage of 47 feet and is 80 feet deep with a total lot size of 3,834 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The property is in the Tribeca East Historic District. The city-designated market value for the property in 2022 is $3.7 million. The most recent loan totaled $16.7 million and was provided by iBorrow on September 30, 2021.

Violations and lawsuits

According to city public data, the property has received $5,165 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 neighborhood

In Tribeca, The bulk, or 47 percent of the 15.3 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Tribeca has 1.9 times the average sales volume among other neighborhoods with $657.8 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, Tribeca has 3.1 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Manhattan. It had 3.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 21 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 14 commercial properties representing 31,717 square feet of the 167,264 square feet. The largest owner is Robert T. Moskowitz, followed by Patricia Moezinia and then Churchill Real Estate Holdings.
There are no active new building construction projects on this tax block.

The majority, or 46 percent of the 167,264 square feet of built space are mixed-use buildings, with elevator buildings next occupying 20 percent of the space.

The seller

The PincusCo database currently indicates that Churchill Real Estate Holdings owned at least 10 commercial properties with 140 residential units in New York City with 239,672 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $161.6 million in debt, with top three lenders as Square Mile Capital Management, Keysite Capital Partners, and Silver Point Capital respectively. Within the portfolio, the bulk, or 44 percent of the 239,672 square feet of built space are elevator properties, with office properties next occupying 35 percent of the space. They are all located in Manhattan.

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