ZD Jasper pays $24.5M to Extell for dev site in Carnegie Hill, no NB plans filed

ZD Jasper Realty through the entity ZDJ E 86 LLC paid $24.5 million to Gary Barnett’s Extell Development through the entity 171 East 86 Street LLC for the retail building (K1) at 1530 Third Avenue in Carnegie Hill, Manhattan. There are no new buildings plans filed for the site.
The deal closed on October 10, 2023 and was recorded on November 1, 2023. The property has 5,000 square feet of built space and 44,991 square feet of additional air rights for a total buildable of 49,990 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $4,900 and the price per buildable square foot is $490 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, with the address 171 East 86th Street on November 30, 2021, for $21 million. At the time, the it was not known that the buyer was Extell Development, but in 2022 Extell under its own name filed demolition plans for the property. The signatory for Extell Development was Gary Barnett. The signatory for ZD Jasper Realty was Zhidong Wu. The contract date was June 12, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer ZD Jasper Realty purchased nine properties in four transactions for a total of $117.8 million and has no record it sold any properties over the past 24 months.
The seller Extell Development purchased 20 properties in six transactions for a total of $1.2 billion and sold 29 properties in 27 transactions for a total of $740 million over the same time period.

The property

The retail building in Carnegie Hill has 5,000 square feet of built space and 44,991 square feet of additional air rights for a total buildable of 49,990 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 4,999 square feet. The zoning is C2-8A which allows for up to 2 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 $9.5 million. The most recent loan totaled $14.4 million and was provided by Signature Bank on November 30, 2021.

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 $350 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 Carnegie Hill, The majority, or 56 percent of the 13.5 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 18 percent of the space. In sales, Carnegie Hill has 2.4 times the average sales volume among other neighborhoods with $845.2 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, Carnegie Hill has had very little major development activity relative to other neighborhoods.It had 825,141 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 10 commercial properties representing 108,216 square feet of the 356,670 square feet. The largest owner is Pan Am Equities, followed by Mcgee and then 171 East 86 Street Llc.
On the tax block, there was one new building construction project filed totaling 203,157 square feet. It is a 61-unit, 203,157 square-foot residential (R-2) building submitted by Ceruzzi Properties and filed by Kenneth Cartelli with plans filed February 10, 2016 and permitted January 30, 2018.

The majority, or 69 percent of the 356,670 square feet of built space are elevator buildings, with retail buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Extell Development owned at least 65 commercial properties with 793 residential units in New York City with 2,830,410 square feet and a city-determined market value of $748.6 million. (Market value is typically about 50% of actual value.) The portfolio has $5.5 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and Prudential Credit Opportunities respectively. Within the portfolio, the bulk, or 38 percent of the 2,830,410 square feet of built space are specialty properties, with elevator properties next occupying 28 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Brooklyn next at 4 percent of the space.

The buyer

The PincusCo database currently indicates that Zd Jasper Realty owned at least 14 commercial properties with 120 residential units in New York City with 113,234 square feet and a city-determined market value of $28.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 44 percent of the 113,234 square feet of built space are elevator properties, with industrial properties next occupying 38 percent of the space. The bulk, or 62 percent of the built space, is in Queens, with Manhattan next at 38 percent of the space.

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