$13.5M notes secured by 8-unit Chinatown walkup sold

388 Broadway (Credit - Google)
The entity White Walker Holdings 1 LLC and White Walker Holdings 2 LLC through the signatory Shahn Anderson bought two notes with an original principal of $13.5 million from Avant Capital secured by Barry Leon’s eight-unit residential walkup building (C7) at 388 Broadway in Chinatown, Manhattan.
The deal closed on December 15, 2022 and was recorded on January 10, 2023. The prior lender was Avant Capital which held debt that had an original loan amount of $13.5 million. The property has 24,000 square feet of built space and 5,423 square feet of additional air rights for a total buildable of 29,413 square feet according to PincusCo analysis of city data.
The signatory for the original loans was Barry Leon.
Avant in 2021 filed a pre-foreclosure action 850264/2021 which is still active. Avant Capital through the entity Downspout Capital IX LLC lent the Shahn Anderson White Walker Holdings entities approximately $13 million to buy the loans from Avant, according to property records.
Prior sales and revenue
The 24,000-square-foot property generated revenue of $431,040 or $18 per square foot, according to the most recent income and expense figures.
The property
The 388 Broadway parcel has frontage of 28 feet and is 175 feet deep with a total lot size of 4,886 square feet. The lot is irregular. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The property is in the Tribeca East Historic District. The city-designated market value for the property in 2022 is $6 million.
Violations and lawsuits
The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $12 million commercial foreclosure concerning a loan filed on November 15, 2021, by Avant Capital against Barry Leon. In addition, according to city public data, the property has received $3,715 in OATH penalties 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 block
On this tax block, PincusCo has identified the owners of four of the 21 commercial properties representing 114,140 square feet of the 454,026 square feet. The largest owner is Manuel Glas, followed by Lana Choy and then Gerald P. Weinstein.
There are no active new building construction projects on this tax block.
The majority, or 41 percent of the 436,006 square feet of built space are office buildings, with mixed-use buildings next occupying 21 percent of the space.
The borrower
The PincusCo database currently indicates that Barry Leon owned at least four commercial properties in New York City with 105,874 square feet and a city-determined market value of $9.1 million. (Market value is typically about 50% of actual value.) The portfolio has $49.4 million in debt, borrowed from Fort Amsterdam Capital and Popular Bank. Within the portfolio, the bulk, or 60 percent of the 105,874 square feet of built space are D1 properties, with elevator properties next occupying 40 percent of the space. The bulk, or 60 percent of the built space, is in Brooklyn, with Queens next at 40 percent of the space.
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