ZD Jasper pays $48M to Pinnacle Group for development site in Hudson Yards

ZD Jasper through the entity Zdj Hudson Yards LLC paid $48 million to Pinnacle Group through the entity Hudson Meyer LLC for the development site at 485-501 Ninth Avenue in Hudson Yards, Manhattan.
The deal closed on May 10, 2022 and was recorded on May 27, 2022. The four parcels have zero square feet of built space and 104,254 square feet of additional air rights for a total buildable of 104,254 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $460 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.)

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 501 9th Avenue.

The property

The 501 9th Avenue parcel has frontage of 49 feet and is 197 feet deep with a total lot size of 11,289 square feet. The lot is irregular. The zoning is C1-7A which allows for up to 2 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.1 million.The most recent loan totaled $35 million and was provided by Axos Bank on January 6, 2021.
The 485-487 9th Avenue parcel has frontage of 36 feet and is 64 feet deep with a total lot size of 2,366 square feet. The zoning is C1-7A which allows for up to 2 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.9 million.The most recent loan totaled $35 million and was provided by Axos Bank on January 6, 2021.
The 489-491 9th Avenue parcel has frontage of 37 feet and is 64 feet deep with a total lot size of 2,381 square feet. The zoning is C1-7A which allows for up to 2 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.6 million.The most recent loan totaled $35 million and was provided by Axos Bank on January 6, 2021.

Violations and lawsuits

The properties were involved in one lawsuit and zero bankruptcies over the past two years. The suit was a judgment concerning a health nuisance filed on April 5, 2022, by City of New York against Pinnacle Group. In addition, according to city public data, the properties have received $1,280 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 $5 million on this tax lot.

The neighborhood

In Hudson Yards, the majority, or 74 percent of the 46.4 million square feet of commercial built space are office buildings, with specialty buildings next occupying 12 percent of the space. In sales, Hudson Yards has 3.9 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 11th highest in Manhattan. For development, Hudson Yards is the 4th most active neighborhood among other neighborhoods. It had 6 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On the tax block of 501 9th Avenue, PincusCo has identified the owners of nine of the 18 commercial properties representing 489,104 square feet of the 622,035 square feet. The largest owner is TF Cornerstone, followed by Pinnacle Group and then Happy Living Development. There is one active new building construction project totaling 15,155 square feet. It is a nine-unit, 15,155-square-foot R-2 building developed by Levi Balkany with plans filed August 17, 2016 and permitted April 11, 2019.

The majority, or 88 percent of the 636,571 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 7 percent of the space.

Surrounding

Within a 400-foot radius of 501 9th Avenue, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Antonino Pecora borrowed $11 million from BNB Bank secured by the 25,230-square-foot, 48-unit rental (D6) on 506 9th Avenue on December 14, 2020.

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