|Shares Out. (in M):||0||P/E||0||0|
|Market Cap (in $M):||26||P/FCF||0||0|
|Net Debt (in $M):||0||EBIT||0||0|
DuArt Film Laboratories, Inc (DAFL) is an illiquid micro-cap stock that almost never trades. Needless to say, this is a PA idea. There are 152,797 shares of DAFL outstanding, which at the recent quote of $170/share makes for a $25.9mm market cap.
Among other assets, DuArt owns a 61,828 sq. ft. building sitting on a 6,025 sq. ft. parcel of land. How much is this building worth? “Well, where is this building?”. As they say in real estate, “location, location, location”. William Safire explored the origin of this eternal truth in a New York Times Magazine article and apparently it first appeared in print in a 1926 Chicago Tribune real estate classified ad. Incidentally, 1926 was a full four years after DAFL was incorporated in New York.
DAFL’s building is located at 245 W 55th St in Manhattan between 8th and Broadway (New York block 1027, lot 7). The DuArt Realty Corporation purchased the land and building from a Mr. Stanley Stern in 1970 for an unknown amount of cash (presumably there was a cash component), the assumption of a $572,868.32 first mortgage, and a seller financed $457,131.68 second mortgage. Mr. Stern likely regrets selling this property, but don’t feel too bad for him. His listed address on the deed transfer was 950 Fifth Ave.
DuArt Realty Corp transferred ownership of DuArt Film Laboratories in 1976. Then, in 1990 the mortgage on the building that was originally taken out by one Ruth Wallace on April 11, 1921 and consolidated/refinanced through all subsequent owners was finally paid off by DAFL. There have been no other mortgages recorded on the property since then.
I’m sure you have figured out by now that the DAFL building is probably worth more than the company’s $25.9mm market cap. How much more? It’s hard to come up with an exact answer, but “a whole lot more” is probably a reasonable statement. Looking through commercial real estate listings, the best comparable I could find is a $17.5mm listing (I wrote this a year ago, so the listing is no longer active, but other commercial listings around Manhattan are easy to find – I’m keeping this listing because it’s funny, you’ll see) for 216 W 50th St. (block 1021, lot 49). Instead of simply linking you to the Google Street View, I will paste a screenshot below because… reasons.