Williams Equities pays $147.5M to PGIM, SJP for office on Park Avenue South

Williams Equities through the entity 470 Park Ave South LLC paid $147.5 million to PGIM Real Estate and SJP Properties through the entity Prii Sjp 470 Park LLC for the office building (O6) at 470 Park Avenue South, the entire block front between 31st and 32nd streets in Midtown South, Manhattan. The expected use is cash flowing.
The New York Post reported on this sale earlier.
The deal closed on December 30, 2024 and was recorded on January 8, 2025. The property has 227,053 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $649 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 seller bought the property on November 19, 2007, for $157 million. The signatory for PGIM Real Estate and SJP was Lynn deCastro. The signatory for Williams Equities was William E. Stempel. The contract date was December 30, 2024.

Williams Equities financed the purchase with a $100 million loan from MetLife.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Williams Equities had purchased any other properties and sold one property in one transaction for a total of $159.4 million over the past 24 months.
The seller PGIM Real Estate had not purchased any other properties and sold two properties in one transaction for a total of $104.5 million over the same time period.

The property

The office building in Park Avenue South has 227,053 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 197 feet and is 122 feet deep with a total lot size of 20,025 square feet. The lot is irregular. The zoning is C6-4A which allows for up to 10 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 $81.5 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 $3,125 in ECB penalties and $5,880 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 Park Avenue South, The majority, or 67 percent of the 9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 16 percent of the space. In sales, Park Avenue South has 2.4 times the average sales volume among other neighborhoods with $634.1 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, Park Avenue South has had very little major development activity relative to other neighborhoods.It had 442,217 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 11 of the 26 commercial properties representing 943,173 square feet of the 2,092,839 square feet. The largest owner is Rosen Equities, followed by Stuart Watson and then Himmel + Meringoff Properties.
There are no active new building construction projects on this tax block.

The majority, or 71 percent of the 2.1 million square feet of built space are office buildings, with elevator buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Pgim Real Estate owned at least one commercial property in New York City with 3,750 square feet and a city-determined market value of $1.8 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single retail property. It is located in Manhattan.

The buyer

The PincusCo database currently indicates that Williams Equities owned at least two commercial properties in New York City with 553,066 square feet and a city-determined market value of $298.4 million. (Market value is typically about 50% of actual value.) The portfolio has $220 million in debt, borrowed from Citibank and 3650 REIT. Within the portfolio, all identified are office properties. They are all located in Manhattan.

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