Designer Akris pays $17.5M for 4th building on Madison Avenue block, now totals 123 feet of frontage

Fashion designer Akris through the entity Myles Madison, Inc. paid $17.5 million to Perry R. Haberman through the entity A. L. Holdings, Inc. for the six-unit mixed-use building (K4) at 833 Madison Avenue in Lenox Hill, Manhattan.

This is Akris’s fourth building on the stretch of Madison Avenue, and it now controls 123 feet of frontage. It does not, however, control either corner. The southern corner, 829 Madison Avenue, sold in January 2022 for $17 million to a company with management at Midwood Investment & Development.

The Akris deal closed on October 20, 2022 and was recorded on October 25, 2022. The property has 9,302 square feet of built space and 16,621 square feet of additional air rights for a total buildable of 25,930 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,881 and the price per buildable square foot is $674 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Perry R. Haberman was Perry R. Haberman. The signatory for Akris was Peter Kriemler. Akris already owns 831, 835 and 837 Madison Avenue. Peter Kriemler is the company global CEO.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Akris purchased three properties in three transactions for a total of $45 million and has no record it sold any properties over the past 24 months.
The seller Perry R. Haberman had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Perry Haberman, head officer and Cindy Fleisher, officer. The business entity is Al Holdings Inc. The 9,302-square-foot property generated revenue of $2.4 million or $262 per square foot, according to the most recent income and expense figures.

The property

The 833 Madison Avenue parcel has frontage of 32 feet and is 80 feet deep with a total lot size of 2,593 square feet. The zoning is C5-1 which allows for up to 4 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Upper East Side Historic District. The city-designated market value for the property in 2022 is $11.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Lenox Hill, the bulk, or 35 percent of the 51.9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $3.3 billion in sales volume in the last two years. For development, Lenox Hill has 1.8 times the average amount of major developments relative to other neighborhoods and is the 13th highest in Manhattan. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 14 commercial properties representing 62,962 square feet of the 169,242 square feet. The largest owner is Reuben Brothers, followed by JSRE Acquisitions and then Akris.
There are no active new building construction projects on this tax block.

The majority, or 28 percent of the 132,172 square feet of built space are walkup buildings, with specialty buildings next occupying 21 percent of the space.

The buyer

The PincusCo database currently indicates that Akris owned at least three commercial properties in New York City with 33,588 square feet and a city-determined market value of $27.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 48 percent of the 33,588 square feet of built space are D7 properties, with retail properties next occupying 27 percent of the space. They are all located in Manhattan.

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