Sanyo Chemical pays $13M for 21-unit walkup in Hell’s Kitchen, up from $6.6M in 2019

Sanyo Chemical through the entity Sanyo Chemical Co., Ltd. paid $13 million to an entity at Relo Redac Inc., 439 West 46 SG LLC, for the midblock 21-unit residential walkup building at 439 West 46th Street in Hell’s Kitchen, Manhattan.
The deal closed on March 30, 2022 and was recorded on April 22, 2022.

The property has 9,390 square feet of built space and 6,530 square feet of additional air rights for a total buildable of 15,916 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,383 and the price per buildable square foot is $816 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 on April 9, 2019, for $6.6 million. The signatory for Relo Redac Inc. was an attorney, Neal Weinstein. The signatory for Sanyo Chemical was Akihiro Takeda. Akihiro Takeda is the president of Sanyo Chemical. The seller is an entity in care of the Japanese brokerage and investment firm Relo Redac, which operates furnished apartments and also brokerage services.  Hajime Nanahara of Relo Group was the signatory when the seller entity bought the property in 2019. Traded NY reported in 2019 that the buyer at that time was Sun Frontier Co. and Seiichi Saito.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Sanyo Chemical had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Relo Redac Inc. had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Michael Mintz, head officer and Yuval Plattner, agent. The business entities are Md Squared Property Group and 439 West 46 Sg Llc. The 9,390-square-foot property generated revenue of $394,474 or $42 per square foot, according to the most recent income and expense figures.

The property

The 439 West 46th Street parcel has frontage of 26 feet and is 100 feet deep with a total lot size of 2,644 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received one housing violation and $50 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 Hell’s Kitchen, the bulk, or 39 percent of the 45 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Hell’s Kitchen has 3.5 times the average sales volume among other neighborhoods with $972.1 million in sales volume in the last two years and is the 13th highest in Manhattan. For development, Hell’s Kitchen has 1.3 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Manhattan. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the 31 commercial properties representing 22,714 square feet of the 361,355 square feet. The largest owner is Thomas Makkos, followed by Scharfman Organization and then Friedman Management. There are no active new building construction projects on this tax block.

The majority, or 42 percent of the 553,693 square feet of built space are residential walkup buildings, with walkup buildings next occupying 24 percent of the space.

Surrounding

Within a 400-foot radius of 439 West 46th Street, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on April 16, 2021 for the $310,600 renovation of 7,655-square-foot RES building with 15 residential units at 453 West 46th Street.
Of those four items, two were sales above $5 million totaling $10.5 million. The most recent of the two was Chaim Hager which bought the 7,200-square-foot, 12-unit rental (C7) on 416 West 46th Street for $5 million from Yong Sull on April 11, 2022.
One of those four items was a loan which Icon Realty Management borrowed $18.2 million from Signature Bank secured by the 7,686-square-foot, 10-unit rental (C1) on 447 West 47th Street and three other properties on June 12, 2020.

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