I-Sales Recap: Essex Crossing JV Sells Retail Condos for $24M

Rising interest rates and higher borrowing costs are continuing to eat into New York City’s mid-market dealmaking.

Only three transactions involving midsize commercial properties valued between $10 million and $40 million hit city records last week. Manhattan had two investment sales while Brooklyn had one.

Below is more information on each deal, ranked by dollar amount.

Delancey Street Associates, a joint venture of Taconic Investment Partners, L+M Development, BFC Partners, Prusik Group and Goldman Sachs Asset Management’s Urban Investment Group, sold a pair of retail condos at 242 Broome Street on the Lower East Side for $24.4 million to an entity connected to Coral Gables-based Amerant Bank. The units are part of a 15-story, 185,000-square-foot building in the joint venture's Essex Crossing mixed-use development.

An entity connected to BentallGreenOak bought a warehouse at 2300 Linden Boulevard in East New York for $20.4 million from an entity tied to Charles Monchik. BentallGreenOak, an asset manager, acquired the property’s ground lease in 2021 for $24.7 million from Turnbridge Equities and Harbor Group International. Amazon is a subtenant in the 100,000-square-foot industrial building.

An entity tied to Miami-based investment firm Rialto Capital acquired two retail condo units at 115 Mercer Street in Soho for $18.4 million via referee Roberta Ashkin. The units were owned by Thor Equities, which was facing foreclosure after defaulting on its payments, but Joe Sitt’s real estate firm utilized a special servicer. The 4,000-square-foot units are part of a seven-floor, 26,700-square-foot, mixed-use building.