West Village church signs 20-year lease with charter school starting at $1.5M per year

The West Village Roman Catholic Church of Our Lady of Pompeii as landlord signed a 20-year lease that includes a 10-year extension, with the charter school Great Oaks Foundation as tenant, starting at $1.52 million per year at 240 Bleecker Street in the West Village, Manhattan.

PincusCo calculated the lease to be worth $30 million by dividing the first year rent of $1.52 million by the 5% capitalization rate. The lease commencement date was July 1, 2022.

The space consists of approximately 39,064 total rentable square feet of space, including 5,959 square feet on the cellar floor and 33,105 square feet of space on the first floor, second floor, third floor, fourth floor, fifth floor, and sixth floor.

According to the petition, “In consideration for the completion of Tenant’s Anticipated Capital Improvements and Tenant’s installation of a fire alarm system and obtaining of the required assembly permit, Landlord agrees to reimburse Tenant (in the form of a Base Rent credit) the sum of (i)$1,267,630.00 for Tenant’s Anticipated Capital Improvements, and (ii) all documented costs involved in the installation of the fire alarm system and obtaining of the required assembly permit but subject to a “cap” of $435,000.00 (collectively, the “Tenant Improvement Credit”). Landlord agrees to apply the aggregate Tenant Improvement Credit of $1,702,630.00 in twenty-one (21) equal monthly installments of $81,077.62 as a credit against the monthly Base Rent due for months 9-12, 22-26, 34-39, and 45-50 following the Rent Commencement Date. The foregoing application of the Tenant Improvement Credit shall be more fully set forth in the Rent Notice, the form of which is attached hereto as Exhibit B.” The overall cost of labor and materials in the amount of $5,126,694 will be used to address three main areas of improvement: structural improvements, handicap accessibility, and redesign of the 5th floor. The soft construction cost is estimated at 10% totaling $500,000 and the remaining funds will be allocated to hard costs, estimated at just over $4,600,000. Tenant represents to Landlord that there were no brokers with whom Tenant has consulted in bringing about this Lease other than Jones Lang LaSalle Brokerage, Inc. (“Tenant’s Broker”) and BOS Development LLC (“Landlord’s Broker”, together with Tenant’s Broker, collectively, the “Broker”).”

The property

The 246 Bleecker Street parcel has frontage of 180 feet and is 100 feet deep with a total lot size of 18,000 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 Greenwich Village Historic District Extension II. The city-designated market value for the property in 2022 is $9.4 million.

Prior sales and revenue

The property in Greenwich Village has 76,888 square feet of built space according to a PincusCo analysis of city data.

Violations and lawsuits

According to city public data, the property has received $1,900 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property since September of 2020.

The neighborhood

In Greenwich Village, the bulk, or 24 percent of the 22.4 million square feet of commercial built space are specialty buildings, with hotel buildings next occupying 17 percent of the space. In sales, Greenwich Village has the 10th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Greenwich Village has near average amount of major developments among other neighborhoods and is the 25th highest in Manhattan. It had 895,738 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 11 of the 31 commercial properties representing 130,104 square feet of the 239,703 square feet. The largest owner is Ralph Della Cava Jr., followed by Alchemy Ventures and then Robert Chou. There are no active new building construction projects on this tax block.

The surrounding

Within a 400-foot radius of 246 Bleecker Street, Pincusco identified 12 commercial real estate items of interests occurred over the past 24 months. Of those 12 items, five were sales above $5 million totaling $43.7 million. The most recent of the five was Penn South Capital which bought the 9,293-square-foot, 26-unit rental (C5) on 32 Cornelia Street for $8.5 million from Musano family on March 9, 2022. Of those 12 items, seven were loans above $5 million totaling $67.8 million. The most recent of the seven was A&R Kalimian Realty which borrowed $10 million from Dime Community Bank secured by the 4,300-square-foot, three-unit mixed-use building (S2) on 321 Avenue Of The Amer and three other properties on August 3, 2022.

Direct link to the property’s ACRIS page and link to DOB NOW portal.