Harkham Ventures pays $10.5M to Corigin for mixed-use in SoHo

Efrem Harkham’s Harkham Ventures through the entity 206 Spring Property LLC paid $10.5 million to Corigin through the entity 206 Spring LLC for the midblock mixed-use building at 206 Spring Street in SoHo, Manhattan.
The deal closed on March 23, 2022 and was recorded on April 5, 2022.

The property has 12,400 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $846 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 November 20, 2012, for $8 million. The signatory for Corigin was Adam Savell. The signatory for Efrem Harkham was Efrem Harkham. Adam Savell is vice president at Corigin.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Efrem Harkham had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Corigin had not purchased any other properties and sold two properties in two transactions for a total of $41.1 million over the same time period. The 12,400-square-foot property generated revenue of $1.2 million or $98 per square foot, according to the most recent income and expense figures.

The property

The 206 Spring Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the Sullivan-Thompson Historic District. The city-designated market value for the property in 2022 is $5.8 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 $725 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 commercial 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

There is one active new building construction project totaling 81,565 square feet. It is a 22-unit, 81,565-square-foot R-2 building developed by Richard Lam with plans filed January 31, 2013 and permitted December 8, 2014.

The majority, or 30 percent of the 61,091 square feet of built space are 1-4 family buildings, with residential elevator buildings next occupying 27 percent of the space.

The seller

The PincusCo database, which is incomplete, currently tracks one commercial property owned by Corigin with 5,625 square feet and a city-determined market value of $2.4 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single residential walkup property. It is located in Brooklyn.

Surrounding

Within a 400-foot radius of 206 Spring Street, PincusCo identified 18 commercial real estate items of interests occurred over the past 24 months.
Of those 18 items, one was in new building development. It was a new building permit application filed on July 22, 2021 for a 25,552-square-foot R-2 building with nine residential units at 182 Spring Street.
Of those 18 items, two were for major renovation including a certificate of occupancy change. They were two initial temporary certificate of occupancy issuances for projects that initially costed $3.8 million. The most recent of these two items was the temporary certificate of occupancy on October 21, 2020 for a 282,202-square-foot B building with no residential units at 161 Avenue Of The Americas.
Of those 18 items, four were sales above $5 million totaling $52.4 million. The most recent of the four was Avrohom Prager which bought the 2,239-square-foot, two-unit two-family building (B3) on 188 Spring Street for $6 million from Madison Realty Capital on February 25, 2022.
Of those 18 items, 11 were loans above $5 million totaling $929.9 million. The most recent of the 11 was Avrohom Prager which borrowed $6 million from Cross County Savings Bank secured by the 2,239-square-foot, two-unit two-family building (B3) on 188 Spring Street on March 11, 2022.

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