Zhou Xu pays $3.5M to CloudKitchens for dev site in Chinatown

Zhou Xu through the entity Mc15 Management LLC paid $3.5 million to CloudKitchens, also known as City Storage Systems, through the entity 15 Catherine Street NYC LLC for the development site at 15 Catherine Street in Chinatown, Manhattan. CloudKitchens operates ghost kitchens which it leases to users.
The deal closed on April 30, 2025 and was recorded on May 28, 2025.
The seller bought the property on May 6, 2021, for $5.2 million. The signatory for City Storage Systems was Mark Morkos . The signatory for Zhou Xu was Zhou Xu. The contract date was December 16, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Zhou Xu had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller City Storage Systems had not purchased any other properties and had not sold any properties over the same time period.

The property

The site was formerly occupied by an office building with 20,723 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 27 feet and is 113 feet deep with a total lot size of 3,075 square feet. The lot is irregular. The city-designated market value for the property in 2022 is $798,558. The most recent loan totaled $6 million and was provided by Goldman Sachs on October 21, 2021, but was paid off.

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 $3,200 in OATH penalties in the last year.

Development

On the lot, there was a new building construction project, M00636790, for a 17,750 square-foot commercial building. The project was submitted by Simone Sarcona with plans filed January 26, 2022 and it has not been permitted yet.

The neighborhood

In Chinatown, The bulk, or 36 percent of the 8.4 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 17 percent of the space. In sales, Chinatown has had very little sales volume relative to other neighborhoods with $214.7 million in sales volume in the last two years. For development, Chinatown has had very little major development activity relative to other neighborhoods.It had 313,706 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 12 of the 38 commercial properties representing 239,541 square feet of the 501,568 square feet. The largest owner is Conway Capital, followed by Yi K. Lam and then W&L Group.
On the tax block, there were two new building construction projects totaling 115,450 square feet. The largest is a 80-unit, 97,700 square-foot residential (R-2) building submitted by W&L Group and filed by Thomas Wang with plans filed May 29, 2019 and permitted March 28, 2022. The second largest is a 17,750 square-foot industrial (F-2) building submitted by Simone Sarcona with plans filed January 26, 2022 and it has not been permitted yet.

The majority, or 34 percent of the 501,568 square feet of built space are walkup buildings, with elevator buildings next occupying 26 percent of the space.

The seller

The PincusCo database currently indicates that City Storage Systems owned at least three commercial properties in New York City with 42,826 square feet and a city-determined market value of $3.5 million. (Market value is typically about 50% of actual value.) The portfolio has $11.9 million in debt, borrowed from Goldman Sachs. Within the portfolio, the bulk, or 72 percent of the 42,826 square feet of built space are office properties, with industrial properties next occupying 28 percent of the space. The bulk, or 48 percent of the built space, is in Manhattan, with Bronx next at 28 percent of the space.

The buyer

The PincusCo database currently indicates that Zhou Xu owned at least two commercial properties with two residential units in New York City with 5,969 square feet and a city-determined market value of $1.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 61 percent of the 5,969 square feet of built space are mixed-use properties, with industrial properties next occupying 39 percent of the space. They are all located in Queens.

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