Oculus Realty pays $32M to Morgan Holding Capital for 11 properties in Greenwich Village

Oculus Realty through the entity OR Patchin Place, LLC paid $32 million to Morgan Holding Capital through the entity Patchin Place, LLC for the four-unit mixed-use building at 9 Patchin Place in Greenwich Village, Manhattan, five-unit residential walkup building at 7 Patchin Place in Greenwich Village, Manhattan, and midblock 1-4 family building at 1 Patchin Place in Greenwich Village, Manhattan.
The deal closed on March 1, 2022 and was recorded on March 15, 2022.The 11 properties have 27,807 square feet of built space and 9,757 square feet of additional air rights for a total buildable of 35,708 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,150 and the price per buildable square foot is $896 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 Morgan Holding Capital was Andrew J. Duell. The signatory for Oculus Realty was Adam J. Semler.

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 9 Patchin Place.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Adam J. Semler purchased 19 properties in 18 transactions for a total of $110.5 million and has no record it sold any properties over the past 24 months.
The seller Morgan Holding Capital 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 included Andrew Duell, head officer and Flaminiu Borocan, site manager. The business entities are Veritas and Patchin Place Llc. Out of the 11 properties, two with a total of 27,807 square feet of built space generated revenue of $317,896 per year.

The property

The 9 Patchin Place parcel has frontage of 21 feet and is 60 feet deep with a total lot size of 1,140 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property is in the Greenwich Village Historic District. The city-designated market value for the property in 2022 is $4.7 million.The most recent loan totaled $5.5 million and was provided by Dr. Bank on February 25, 2021.

Violations and lawsuits

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have received four housing violations in the last year.

Development

For the tax lot buildings, one out of the 11 buildings received an initial certificate of occupancy in the last ten years. 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 Greenwich Village, the bulk, or 35 percent of the 34 million square feet of built space are residential elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Greenwich Village has the 10th highest sale turnover among other neighborhoods in the city with $1.3 billion in sales volume in the last two years. For development, Greenwich Village has had very little major development activity relative to other neighborhoods.It had 445,850 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.

The block

On the tax block of 9 Patchin Place, PincusCo has identified the owners of 13 of the 41 commercial properties representing 114,615 square feet of the 261,034 square feet. The largest owner is NYC Department of Education, followed by Morgan Holding Capital and then R.A. Cohen & Associates. There are no active new building construction projects on this tax block.

The majority, or 28 percent of the 368,947 square feet of built space are specialty buildings, with residential elevator buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that Morgan Holding Capital owned at least 11 commercial properties with 27,807 square feet and a city-determined market value of $49.1 million. (Market value is typically about 50% of actual value.) The portfolio has $5.5 million in debt, borrowed from DR Bank. Within the portfolio, the bulk, or 40 percent of the 27,807 square feet of built space are 1-4 family properties, with mixed-use properties next occupying 31 percent of the space. They are all located in Manhattan.

Surrounding

Within a 400-foot radius of 9 Patchin Place, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, two were sales above $5 million totaling $27.4 million. The most recent of the two was R.A. Cohen & Associates which bought the 4,386-square-foot, nine-unit rental (C7) on 445 Avenue Of The Amer and four other properties for $12.5 million from Metro Management Development on October 7, 2021.
One of those three items was a loan which R.A. Cohen & Associates borrowed $12 million from First National Bank of Long Island secured by the 3,902-square-foot, nine-unit rental (C7) on 445 Avenue Of The Amer and five other properties on October 7, 2021.

Correction: The buyer was corrected to Oculus Realty, from Adam J. Semler. Semler is a member of the company Oculus. In addition, the transaction date was corrected from March 1, 2021, to March 1, 2022.

Direct link to Acris document. link