Most-expensive recorded sale yet at JDS’s 111 West 57th Street, at $26.7M

The entity 111 West 57th Street #47 LLC paid $26.7 million to JDS Development Group, Property Markets Group, and Spruce Capital Partners through the entity 111 West 57th Property Owner LLC for unit 47 at 111 West 57th Street in Midtown West, Manhattan.
The deal closed on March 15, 2022 and was recorded on March 29, 2022.The property has 4,492 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $5,945 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 JDS Development Group, Property Markets Group, and Spruce Capital Partners was Lori Ostrover. The signatory for 111 West 57th Street #47 LLC was Ross Levine. This is the most expensive closing recorded for the building, even as there have been multiple reports going back several years that more expensive units have gone under contract, including in 2020 and earlier this year for $53.8 million. 

Prior sales and revenue

The seller JDS Development Group had not purchased any other properties and sold three properties in three transactions for a total of $859.5 million over the same time period.

Development

On these lots, there is one active major alteration construction project for a 60-unit, 305,734-square-foot R-2 building. The project was developed by Michael Stern with plans filed August 6, 2013 and permitted June 23, 2015. On the tax lot, there was a condominium project filed with the address 111 West 57th Street and the name 111 West 57th Street Condominium on May 12, 2015. The principals of the sponsor, 111 WEST 57TH PROPERTY OWNER LLC, were Joshua Crane, Kevin Maloney, Robert Schwartz, and Michael Stern.

The block

On this tax block, PincusCo has identified the owners of five of the 48 commercial properties representing 312,502 square feet of the 1,541,269 square feet. The largest owner is Alchemy Properties, followed by S.W. Management and then Extell Development. There are two active new building construction projects totaling 1,555,607 square feet. The largest is a 1,502,992-square-foot office (B) building developed by Kenneth Horn with plans filed November 13, 2019 and it has not been permitted yet. The second largest is a 41-unit, 52,615-square-foot R-2 building developed by Michael Loeb with plans filed November 12, 2015 and it has not been permitted yet.

The majority, or 62 percent of the 1.3 million square feet of built space are residential elevator buildings, with hotel buildings next occupying 25 percent of the space.

The seller

The PincusCo database currently indicates that Property Markets Group owned at least nine commercial properties with 51,397 square feet and a city-determined market value of $11.4 million. (Market value is typically about 50% of actual value.) The portfolio has $442.2 million in debt, with top three lenders as AIG, Maxim Credit Group, and Goldman Sachs respectively. Within the portfolio, the bulk, or 45 percent of the 51,397 square feet of built space are 1-4 family properties, with industrial properties next occupying 39 percent of the space. The bulk, or 55 percent of the built space, is in Brooklyn, with Manhattan next at 45 percent of the space.
The PincusCo database currently indicates that Spruce Capital Partners owned at least one commercial property with 101,957 square feet and a city-determined market value of $26.7 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single residential elevator property. It is located in Brooklyn.

Surrounding

Within a 400-foot radius of 111 West 57th Street, Pincusco identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, three were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $675,000 and two initial temporary certificate of occupancy issuances for projects that initially costed $19.2 million.
Of those nine items, two were sales above $5 million totaling $137.3 million. The most recent of the two was Namdar Realty Group which bought the 9,755-square-foot, eight-unit rental (C7) on 117 West 57th Street for $7.3 million from Peter Loucas on November 26, 2021.
Of those nine items, four were loans above $5 million totaling $271.6 million. The most recent of the four was Namdar Realty Group which borrowed $11.6 million from Ladder Capital secured by the 9,755-square-foot, eight-unit rental (C7) on 117 West 57th Street and one other property on December 3, 2021.

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