Zar Property NY pays $27M to GFP for office in Midtown West

Zar Property NY through the entity West 57th Street LLC paid $27 million to GFP Real Estate through the entity Musart Associates LLC for the office building (O6) at 119 West 57th Street in Midtown West, Manhattan. The expected use is cash flowing.
The deal closed on November 25, 2024 and was recorded on December 5, 2024. The property has 112,147 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $240 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 GFP Real Estate was Alice Alexiou. The signatory for Zar Property NY was Dario Zar. The contract date was August 8, 2024. Zar Property NY leadership includes Dario, David, Simon, Jon and Julian Zar.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Zar Property NY purchased two properties in two transactions for a total of $42.2 million and has no record it sold any properties over the past 24 months.
The seller GFP Real Estate purchased four properties in four transactions for a total of $445.3 million and sold four properties in four transactions for a total of $62.4 million over the same time period.

The property

The office building in Midtown West has 112,147 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 46 feet and is 200 feet deep with a total lot size of 9,575 square feet. The lot is irregular. The zoning is C5-1 which allows for up to 4 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $26.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $3,550 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 $1 million on this tax lot.

The neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 2nd highest sale turnover among other neighborhoods in the city with $2.5 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 27.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 36 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 13 commercial properties representing 302,527 square feet of the 608,474 square feet. The largest owner is Alchemy Properties, followed by S.W. Management and then Klosed Properties.
On the tax block, there were two new building construction projects totaling 1,555,607 square feet. The largest is a 1,502,992 square-foot business (B) building submitted by Alchemy Properties and filed by Kenneth Horn with plans filed November 13, 2019 and permitted September 14, 2022. The second largest is a 41-unit, 52,615 square-foot residential (R-2) building submitted by Extell Development and filed by Michael Loeb with plans filed November 12, 2015 and it has not been permitted yet.

The majority, or 54 percent of the 608,474 square feet of built space are hotel buildings, with office buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that Gfp Real Estate owned at least 17 commercial properties with eight residential units in New York City with 4,955,947 square feet and a city-determined market value of $1.1 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 98 percent of the 4,955,947 square feet of built space are office properties, with industrial properties next occupying 1 percent of the space. The bulk, or 98 percent of the built space, is in Manhattan, with Brooklyn next at 2 percent of the space.

The buyer

The PincusCo database currently indicates that Zar Property Ny owned at least eight commercial properties with 46 residential units in New York City with 430,074 square feet and a city-determined market value of $130.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 92 percent of the 430,074 square feet of built space are office properties, with walkup properties next occupying 8 percent of the space. They are all located in Manhattan.

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