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Zar pays $57M to buy partner out of trio of Soho buildings

Nassimi family had a 42.5% stake in 42 Greene and 90 Grand

90 Grand Street and 42 Greene Street
90 Grand Street and 42 Greene Street

Zar Property NYC is doubling down on a trio of commercial buildings it owns in the heart of Soho.

The firm, which acquired 42 Greene Street and 90 Grand Street along with the Nassimi family in 2008, is buying out its equity partner, property records show. So far, Zar has forked over $57 million for 42.5 percent of the Nassimis’ stake.

The acquisition is in the process of being carried out in a series of six transactions, one of which has yet to close, sources told The Real Deal. The deals range in size from $6.6 million in February 2015 for a 5 percent stake in the properties to $15.87 million in August 2015 for 12 percent. Most recently, Zar paid $11.33 million on Feb. 7 for another 8 percent.

In all, the Nassimi family held a 49 percent stake in the properties, which the partners valued at $125 million.

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Representatives for the Nassimis and Zars could not be reached for comment.

Still, the buyout reflects the surge in office and retail rents in Soho since 2008, when the partners paid $49 million for the buildings. The five-story office building at 42 Greene spans 47,621 square feet, including 11,050 square feet of retail. The other property, at 90 Grand, also known as 38 Greene, is also a five-story office building. It spans 37,500 square feet, including 7,500 square feet of retail.

Sources told TRD that the Nassimi family is likely using the proceeds from selling its stake in the Soho buildings in a 1031 exchange. The family controls more than 6 million square feet of retail, office, industrial and residential real estate, according to its website.

At 38 Greene, Zar is looking to build a two-story penthouse spanning 12,000 square feet. Plans for the glass duplex were approved by the Landmarks Preservation Commission in 2015. The office condo addition would also have three private terraces totaling 4,000 square feet, according to plans filed with the city’s Department of Buildings.

Last month, Zar paid $83 million for the 13-story office building at 250 West 54th Street. The property, which has 163,000 rentable square feet, was owned by investment firm Ascot Properties Company for 39 years.

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