ZD Jasper pays $51.7M to Extell for dev site in Hudson Yards

Tom Zhidong Wu’s ZD Jasper Realty through the entity ZDJ W 37 LLC paid $51.7 million to Extell Development through the entity Exg 430w37 LLC for the industrial building at 430 West 37th Street in Hudson Yards, Manhattan, industrial building at 429 West 36th Street in Hudson Yards, Manhattan, and industrial building at 434 West 37th Street in Hudson Yards, Manhattan.
The deal closed on March 14, 2022 and was recorded on March 25, 2022. The three properties have 28,592 square feet of built space and 90,302 square feet of additional air rights for a total buildable of 118,888 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,809 and the price per buildable square foot is $435 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 Extell Development was Gary Barnett. The signatory for ZD Jasper Realty was Zhidong Wu. PincusCo reported in January that this property was in contract.

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 430 West 37th Street.

Prior sales and revenue

The seller Extell Development purchased 21 properties in four transactions for a total of $48.4 million and sold 64 properties in 50 transactions for a total of $913.2 million over the same time period.

The property

The 430 West 37th Street parcel has frontage of 50 feet and is 98 feet deep with a total lot size of 4,937 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.8 million.

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 two housing violations and $350 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 Hudson Yards, the majority, or 74 percent of the 46.4 million square feet of commercial built space are office buildings, with specialty buildings next occupying 12 percent of the space. In sales, Hudson Yards has 3.9 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 11th highest in Manhattan. For development, Hudson Yards is the 4th most active neighborhood among other neighborhoods. It had 6 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On the tax block of 430 West 37th Street, PincusCo has identified the owners of three of the 39 commercial properties representing 46,201 square feet of the 446,558 square feet. The largest owner is Jinsup An, followed by ZD Jasper and then DDK & Company. There are no active new building construction projects on this tax block.

The majority, or 61 percent of the 350,496 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 18 percent of the space.

The seller

The PincusCo database, which is incomplete) currently indicates that Extell Development owned at least 44 commercial properties with 1,339,153 square feet and a city-determined market value of $264.6 million. (Market value is typically about 50% of actual value.) The portfolio has $4 billion in debt, with top three lenders as Blackstone Group, Prudential Credit Opportunities, and JPMorgan Chase respectively. Within the portfolio, the bulk, or 43 percent of the 1,339,153 square feet of built space are residential elevator properties, with hotel properties next occupying 21 percent of the space. They are all located in Manhattan.

Surrounding

Within a 400-foot radius of 430 West 37th Street, Pincusco identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on October 19, 2020 for the $1.2 million renovation of 14,842-square-foot R-2 building with nine residential units at 440 West 36th Street.
One of those nine items was a sale which ZD Jasper bought the 15,000-square-foot, one-unit industrial (E1) on 439 West 36th Street for $15 million from Craig Policastro on January 4, 2022.
Of those nine items, seven were loans above $5 million totaling $199.6 million. The most recent of the seven was Jinsup An which borrowed $9.7 million from Metropolitan Commercial Bank secured by the 12,340-square-foot, one-unit hotel (H3) on 449 West 36th Street on February 16, 2022.

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