W&L Group Files Plans for $130M Condo Development in Chinatown, NYC

W&L Group, based in Flushing, has submitted a condominium plan for a new development at 59 Henry Street in Chinatown, Manhattan. This plan includes 80 residential units and 21 commercial units, with an estimated sellout value of $129.8 million, as detailed in a June 14, 2024 submission to the New York State Attorney General. The principal sponsors of this project are Ting King Cheng and Ming Yee Kwok.

Development History

The condo submission follows a new building plan initially filed over four years ago. On May 29, 2019, W&L Group submitted a proposal to construct an 80-unit, 97,700 square-foot residential building. This plan, under job number 121205365, was approved on March 28, 2022, and outlines the construction of a 19-story building.

Property Details

The property at 59 Henry Street features a frontage of 175 feet and a depth of 100 feet, totaling 16,999 square feet. Zoned R7-2, the site permits a floor area ratio (FAR) of up to 3.44 for residential use. In 2022, the city's designated market value for the property was $3.8 million. A recent loan for $58.5 million was secured from Preferred Bank on April 28, 2022.

Prior Sales and Revenue

The property was sold along with another property for $30 million on January 11, 2019.

Violations and Lawsuits

Over the past year, the property has accrued $27,500 in ECB penalties and $29,500 in OATH penalties. There have been no lawsuits or bankruptcies filed against the property in the last 24 months.

Neighborhood Overview

Chinatown consists mainly of walkup buildings, making up 36% of its 8.4 million square feet of commercial space, followed by mixed-use buildings at 17%. The area has an average sales volume compared to other neighborhoods, with $126.6 million in sales over the last two years, ranking 33rd in Manhattan. Development activity is also average, with 404,060 square feet of commercial and multi-family construction underway, accounting for 5% of the neighborhood’s built space.

Block Details

On this tax block, PincusCo identified owners of 12 out of 38 commercial properties, representing 239,541 square feet out of 501,568 square feet. Major owners include Carl Ka Che, City Storage Systems, and Conway Capital. Three new building projects totaling 134,862 square feet have been filed, the largest being W&L Group’s 80-unit, 97,700 square-foot residential building.

Owner's Portfolio

W&L Group owns at least five commercial properties in New York City, comprising 231 residential units and totaling 718,786 square feet, with a market value of $33.3 million. The portfolio holds $281.7 million in debt, with the top lenders being G4 Capital Partners, Preferred Bank, and Royal Business Bank. Most of the built space consists of elevator properties (60%) and hotel properties (40%), with Brooklyn and Queens holding the majority of the space.

Surrounding Developments

Within a 400-foot radius of 59 Henry Street, four notable commercial real estate transactions have occurred in the past 24 months. These include a major renovation with a certificate of occupancy change, two sales exceeding $5 million totaling $12.7 million, and a significant loan. The renovation permit was issued on March 21, 2024, for a $749,000 project at 20 Henry Street. Recent sales include Oleksandr Nad’s purchase of a two-unit development site at 83 Madison Street for $5.2 million. Additionally, Delshah Capital secured a $70 million loan from Signature Bank for multiple properties, including 41 Henry Street.