Yeol Kim pays $4.9M to Hidrock Properties for two properties in Garment District

Yeol Kim through the entity RNA Management LLC paid $4.9 million to Hidrock Properties through the entity 3536 Associates LLC for two office condos at 35 West 36th Street in the Garment District, Manhattan.
The deal closed on February 24, 2022 and was recorded on March 10, 2022.
The signatory for Hidrock Properties was Sander Jacobowitz. The signatory for Yeol Kim was Yeol Kim. This is for commercial condo units 3W and 3E. Sander Jacobowitz is the director of acquisitions for Hidrock Properties.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 35 West 36th St.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Yeol Kim had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Hidrock Properties had not purchased any other properties and sold 10 properties in nine transactions for a total of $133.2 million over the same time period.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On the tax block of 35 West 36th Street, PincusCo has identified the owners of nine of the 54 commercial properties representing 1,062,328 square feet of the 2,604,185 square feet. The largest owner is Magna Hospitality Group, followed by Vanbarton Group and then Empire Management. There are three active new building construction projects totaling 280,649 square feet. The largest is a 313-unit, 194,949-square-foot hotel R-1 building developed by Eddie Hidary with plans filed June 14, 2013 and permitted March 3, 2015. The second largest is a 143-unit, 46,824-square-foot hotel R-1 building developed by Richard Fung with plans filed December 4, 2014 and permitted March 9, 2017.

The majority, or 67 percent of the 1.7 million square feet of built space are office buildings, with residential elevator buildings next occupying 26 percent of the space.

The seller

The PincusCo database currently tracks a portion of  Hidrock Properties assets. PincusCo has tracked eight commercial properties with 106,591 square feet and a city-determined market value of $29.8 million. (Market value is typically about 50% of actual value.) The portfolio has $101.5 million in debt, with top three lenders as Citizens Bank, Ladder Capital, and Emerald Creek Capital respectively. Within the portfolio, the bulk, or 33 percent of the 106,591 square feet of built space are development properties, with retail properties next occupying 33 percent of the space. The bulk, or 57 percent of the built space, is in Manhattan, with Brooklyn next at 43 percent of the space.

Surrounding

Within a 400-foot radius of 35 West 36th St, PincusCo identified 18 commercial real estate items of interests occurred over the past 24 months.
Of those 18 items, one was in new building development. It was a new building permit application filed on December 15, 2021 for a 384,118-square-foot R-2 building with 300 residential units at 100 West 37th Street.
Of those 18 items, two were for major renovation including a certificate of occupancy change. They were one permit with a total initial cost of $357,150 and one initial temporary certificate of occupancy issuance for a project that initially costed $1.8 million. The most recent of these two items was the permit on August 2, 2021 for a 4,886-square-foot A-2 building with N/A residential units at 59 West 37th Street.
Of those 18 items, six were sales above $5 million totaling $411.4 million. The most recent of the six was Dong Yin Development (Holdings) Limited which bought the 122,859-square-foot, one-unit hotel (H2) on 63 West 35th Street and one other property for $67.9 million from Pure Virtue Enterprises Limited on January 20, 2022.
Of those 18 items, nine were loans above $5 million totaling $887.2 million. The most recent of the nine was Vanbarton Group which borrowed $242.2 million from Blackstone Group secured by the 386,382-square-foot, 339-unit rental (D6) on 980 Avenue Of The Amer on January 7, 2022.

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