REDA Holdings pays $8.7M for mixed-use in FiDi next to prior $24.5M purchase

REDA Holdings through the entity Reda Peck Slip LLC paid $8.7 million to Alan J. Schnurman and Benjamin Zalman through the entities Peck Ajs, LLC and Peck BZ, LLC, for the midblock four-unit mixed-use building at 25 Peck Slip in the Financial District, Manhattan.
The deal closed on March 9, 2022 and was recorded on March 18, 2022. The property has 10,635 square feet of built space and 2,169 square feet of additional air rights for a total buildable of 12,804 square feet according to PincusCo analysis of city data. The sale price per built square foot is $813 and the price per buildable square foot is $675 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.)

Luciano Cassin of REDA Holdings was the signatory for the buyer. REDA bought the adjacent, larger building February 22, for $24.5 million.

REDA owns seven buildings with a total of 98,052 square feet and 99 residential units, according to an analysis of PincusCo data. Six of those are residential apartment buildings and one is mixed-use.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development included Benjamin Zalman, head officer and Peck Ajs LLC. The business entity was Peck Bz Llc.

The property

The 25 Peck Slip parcel has frontage of 41 feet and is 51 feet deep with a total lot size of 2,127 square feet. The lot is irregular. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The property is in the South Street Seaport Historic District. The city-designated market value for the property in 2022 is $5 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 $100 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 Financial District, the majority, or 71 percent of the 85.8 million square feet of built space are office buildings, with residential elevator buildings next occupying 18 percent of the space. In sales, Financial District has the 5th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Financial District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 21 commercial properties representing 63,271 square feet of the 202,285 square feet. The largest owner is Werber Management, followed by REDA Holdings and then Under The Bridge LLC. There are no active new building construction projects on this tax block.

The majority, or 46 percent of the 215,150 square feet of built space are residential elevator buildings, with mixed-use buildings next occupying 20 percent of the space.

Surrounding

Within a 400-foot radius of 25 Peck Slip, PincusCo identified 10 commercial real estate items of interests occurred over the past 24 months.
Of those 10 items, one was in new building development. It was a new building permit application filed on December 8, 2021 for a 528,345-square-foot R-2 building with 269 residential units at 250 Water Street.
Of those 10 items, two were sales above $5 million totaling $49 million. The most recent of the two was REDA Holdings which bought the 25,903-square-foot, 24-unit rental (D7) on 23 Peck Slip for $24.5 million from Churchill Real Estate Holdings on February 4, 2022.
Of those 10 items, seven were loans above $5 million totaling $273.2 million. The most recent of the seven was REDA Holdings which borrowed $13.5 million from Dime Community Bank secured by the 25,903-square-foot, 24-unit rental (D7) on 23 Peck Slip on February 4, 2022.

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