Purchase is the latest in a dozen transactions in the past four years and signals continued investment in boutique office properties in hot tech and media corridor

Penn South Capital, a subsidiary of RAP Equities, announced that it has acquired a 40,000 square-foot property at 39 Clarkson Street in the vibrant Hudson Square tech and media corridor in Manhattan. Represented by Adam Greene, partner at law firm Robinson Brog Leinwand Greene Genovese & Gluck P.C., and Mike Dabah of Stein Adler Dabah & Zelkowitz LLP, the $27.25M purchase follows a four-year track record of acquisitions for Penn South Capital. During that time, the firm, headed by Parag Sawhney and Raymond Chera, has acquired more than a dozen mixed use/multifamily assets in prime neighborhoods of Manhattan.

The move follows the rent law changes that took place in 2019. At that time, RAP Equities launched a new vertical to diversify into the boutique office market which is strengthend by the increased demand from tech companies. 39 Clarkson Street is slated to be reconfigured from manufacturing space into boutique office space. It is in close proximity to Google’s new campus and Disney’s new headquarters. The team has already secured a high-end restaurant tenant for the retail portion of the building.

Additionally, RAP Equities has recently received a fresh allocation from a major investment firm to capitalize on the repricing of the multifamily market in light of the rent regulations. Its team plans to double its multifamily portfolio over the next two years and will be aggressively seeking investment opportunities for the same.Its next two purchases will include 155 Rivington Street and 116 Suffolk Street.

“With a track record of success, our team’s deep understanding of the Manhattan market, and favorable market conditions, we’re poised for continued growth moving forward,” said Parag Sawhney, managing partner of Penn South Capital. “We’re seeing prices that are starting to make sense again. While cap rates have widened, interest rates remain at historical lows which are creating a very favorable cash flow play without having to drive any buyouts. We are confident that these projects will create value for the community, the business ecosystem, and for our partners.”

About Robinson Brog Leinwand Greene Genovese & Gluck P.C.

Robinson Brog Leinwand Greene Genovese & Gluck P.C., based in New York, N.Y., is a firm of over 50 attorneys that combines the resources, abilities and sophistication of a large law firm with the personal attention and entrepreneurial spirit of a New York City boutique practice. Our attorneys are also particularly experienced and savvy in the New York market. Our clients include public and private corporations, real estate owners and developers, labor unions, contractors, hotels, restaurants, entertainers and private individuals. With our competitive rates, aggressive style and personal accessibility, Robinson Brog has earned a loyal and long-standing client base. For more information, visit www.robinsonbrog.com.