Kevin Ryan-backed venture capital firm may be bullish on bricks-and-mortar

A Nolita building that’s been a darling of investors now appears to be in the hands of a prominent venture capital firm.

The building, 368 Broome St., a 6-story commercial structure at Mott Street, has sold for $41 million, or about $1,300 per square foot, a hefty rate among recent office-building deals.

The buyer is shielded, identified on the deed only as 174 Mott Owner Limited Liability Co. But the contact for the buyer is listed as AlleyCorp, a VC firm helmed by longtime tech startup investor Kevin Ryan. Previous investments by Ryan include fashion company Gilt Groupe, social media site Meetup, media company Insider and, recently, several health care platforms.

In the late 1990s, during the dot-com boom, Ryan rose to fame as the chief executive officer of online ad agency DoubleClick.

So far his current firm, AlleyCorp, which is based at 520 Broadway in SoHo, does not seem to have real estate investments in its portfolio, though it’s possible the company handled the transaction on behalf of one of its fledgling companies.

A 32,200-square-foot, prewar brick building that’s ringed on the sidewalk level with retail spaces, 368 Broome has been in the throes of a top-to-bottom renovation since 2019, building permits show. Though the address is close to SoHo, it is actually outside the area rezoned last winter to allow for more apartment development.

In 2006, 368 Broome, which sits on a busy corner, was snapped up by the landlord Continental Equities Group, which purchased it from Cheung Shing Wong and other owners for about $9 million, records show.

Then, in 2016, Continental, based in Great Neck, Long Island, sold a minority stake to a shell company connected with Oak Lane Partners, a private equity firm, for $11 million, according to a deed. Continental, which also does business as Continental Worsteds, is connected to developers Jack Jangana and Hesky Haim, and has other holdings in downtown Manhattan.

An email sent to AlleyCorp was not returned by press time. And several phone numbers at Continental’s office were unable to accept messages.

Among the largest office deals this year was SL Green Realty Corp.’s purchase of 450 Park Ave., a tower in Midtown, for $445 million, which works out to about $1,300 per square foot. Likewise, Blackstone’s $1.3 billion acquisition of the 1 Manhattan West office spire penciled out to $600 per square foot, according to data from CoStar Group. And A&R Kalimian Realty bought 79 Fifth Ave. for $277 million, or about $800 a foot.

Previously, 368 Broome housed a printing shop, a vintage clothing store called The 1929 and an Asian market, though the retail spaces appear to have been vacant for nearly a decade.

Leave a Reply

Your email address will not be published. Required fields are marked *