$17.7M bankruptcy filed for two East Village rentals

The long-time owners of two East Village rental buildings at 421 East 12th Street and 511 East 6th Street filed bankruptcy petitions for each building yesterday, which give a combined asset value of $17.7 million and noted liabilities of about $12 million.

The petitions were both filed by Alexa Czerny. The Czerny family including Zdzislaw Czerny bought 511 East 6th Street in 1997 and bought 421 East 12th Street in or before 1997. Hirshmark Capital filed to foreclose on the $6 million loan that was secured by both buildings in 2021. In June 2022 Hirshmark sold the loan to Michael Alvandi’s City Urban Realty.

The bankruptcy will halt a sale set for April 3, 2024, at the New York County Supreme Court building at 60 Centre Street in Lower Manhattan. The notice of the sale was published yesterday, the same day the bankruptcies were filed. The foreclosure case is 850248/2021.

Case link 421 East 12th Street

Case link 511 East 6th Street

The elevator building at 421 East 12th Street with 10 residential units in East Village has 10,512 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 24 feet and is 103 feet deep with a total lot size of 2,512 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.7 million.

The walkup building at 511 East 6th Street with 8 residential units in East Village has 6,152 square feet of built space and 300 square feet of additional air rights for a total buildable of 6,447 square feet according to a PincusCo analysis of city data. The parcel has frontage of 23 feet and is 90 feet deep with a total lot size of 2,149 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.6 million.

The surrounding

Within a 400-foot radius of 421 East 12th Street, PincusCo identified two commercial real estate items of interests occurred over the past 24 months. One of those two items was a sale which Bluestar Properties bought the 11,300-square-foot, 22-unit rental (C7) on 210 1st Avenue for $6.5 million from Jovan Subotic on September 21, 2022. One of those two items was a loan which Highpoint Property Group borrowed $16 million from Prime Finance secured by the 12,722-square-foot, six-unit rental (D3) on 436 East 13th Street and one other property on April 4, 2023.

Direct link to the property’s ACRIS page.