Parag Sawhney, Yoni Karako pay $10M for mixed-use in SoHo

UPDATED: Parag Sawhney and Yoni Karako, partners in the venture Vishwaas, through the entity 66 Greene Soho LLC paid $10 million to Joseph Hon Yu and Ho-Chu Yao for the midblock four-unit mixed-use building at 66 Greene Street in SoHo, Manhattan.
The deal closed on March 3, 2022 and was recorded on March 16, 2022. The property has 9,738 square feet of built space and 1,558 square feet of additional air rights for a total buildable of 11,290 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,026 and the price per buildable square foot is $885 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 signatory for Joseph Hon Yu and Ho-Chu Yao was Joseph Hon Yu and Ho-Chu Yao. The signatory for Parag Sawhney was Parag Sawhney.

The former owners according to the Department of Housing Preservation and Development included Joseph Yu, joint owner and Ho Chu Yao, joint owner.

The property

The 66 Greene Street parcel has frontage of 22 feet and is 100 feet deep with a total lot size of 2,258 square feet. The zoning is M1-5A which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $1.8 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $5,150 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 SoHo, the bulk, or 33 percent of the 13 million square feet of built space are office buildings, with residential elevator buildings next occupying 26 percent of the space. In sales, SoHo has 2.3 times the average sales volume among other neighborhoods with $637.7 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 137,726 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 70 commercial properties representing 103,471 square feet of the 337,163 square feet. The largest owner is L3 Capital, followed by Albert Malekan and then Premier Equities. There are no active new building construction projects on this tax block.

The majority, or 31 percent of the 399,271 square feet of built space are residential elevator buildings, with retail buildings next occupying 16 percent of the space.

Surrounding

Within a 400-foot radius of 66 Greene Street, Pincusco identified 17 commercial real estate items of interests occurred over the past 24 months.
Of those 17 items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on December 22, 2020 for the $800,000 renovation of 8,309-square-foot B building with no residential units at 52 Greene Street.
Of those 17 items, seven were sales above $5 million totaling $185.3 million. The most recent of the seven was Acadia Realty Trust which bought one condo unit in the 3,200-square-foot, five-unit mixed-use building (RM) on 90 Greene Street for $39.4 million from Oaktree Capital Management on January 27, 2022.
Of those 17 items, nine were loans above $5 million totaling $228.6 million. The most recent of the nine was WB Property Group which borrowed $21 million from Valley National Bank secured by the 77,066-square-foot, nine-unit office building (O6) on 495 Broadway on February 23, 2022.

UPDATED: The post was updated April 11, 2022 to include Yoni Karada, a partner.

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