Rybak Development files 28-unit condo plan at Carnegie Hill new building project

Rybak Development submitted a condominium plan through the entity 126 East 86 Street Development LLC to create 28 residential units and 1 commercial unit in a project called the Arloparc Condominium with the addresses 124 and 126 East 86th Street, in Carnegie Hill, Manhattan. The sellout price was not disclosed at this time. The principals of the project are Sergey Rybak and Jason Reznik.

The development firm filed a plan for a 28-unit, 76,784 square-foot residential (R-2) building at 126 East 86th Street in Carnegie Hill, Manhattan, with the New York City Department of Buildings on November 4, 2020 under job number 121208861 and was permitted on May 26, 2022. It calls for the construction of a 20-story building.

The property

The 126 East 86 Street parcel has frontage of 51 feet and is 102 feet deep with a total lot size of 5,221 square feet. The zoning is C5-1A 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 city-designated market value for the property in 2022 is $3.3 million. The most recent loan totaled $50.8 million and was provided by Valley National Bank on July 22, 2022.

Violations and lawsuits

According to city public data, the property has received $28,000 in ECB penalties and $33,880 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property since September of 2020.

The neighborhood

In Carnegie Hill, the majority, or 57 percent of the 13.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 17 percent of the space. In sales, Carnegie Hill has near average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the 13th highest in Manhattan. For development, Carnegie Hill has near average amount of major developments among other neighborhoods and is the 26th highest in Manhattan. It had 797,845 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 13 commercial properties representing 206,022 square feet of the 997,542 square feet. The largest owner is Vornado Realty Trust and then Klosed Properties. On the tax block, there was one new building construction project filed totaling 63,888 square feet. It is a 32-unit, 63,888 square-foot R-2 building developed by Sergey Rybak with plans filed November 4, 2020 and permitted May 26, 2022.

The owner

The PincusCo database currently indicates that Rybak Development owned at least nine commercial properties in New York City with 297,249 square feet and a city-determined market value of $36.5 million. (Market value is typically about 50% of actual value.) The portfolio has $257.1 million in debt, with top three lenders as Valley National Bank, MF1 Capital, and Bank Leumi respectively. Within the portfolio, the bulk, or 50 percent of the 297,249 square feet of built space are rental condo properties, with elevator properties next occupying 18 percent of the space. The bulk, or 81 percent of the built space, is in Brooklyn, with Queens next at 12 percent of the space.

The surrounding

Within a 400-foot radius of 126 East 86 Street, PincusCo identified 11 commercial real estate items of interests occurred over the past 24 months. Of those 11 items, three were for major renovation including a certificate of occupancy change. They were two permits with a total initial cost of $2.1 million and one initial temporary certificate of occupancy issuance for a project that initially costed $306,160. The most recent of these three items was the permit on August 16, 2021 for a 350,077-square-foot R-2 building with 222 residential units at 120 East 87th Street. Of those 11 items, three were sales above $5 million totaling $251.3 million. The most recent of the three was Zeckendorf Development which bought two condo units in the 19,844-square-foot, three-unit mixed-use building (RM) on 147 East 86th Street and one other properties for $231.8 million from Children’s Investment Fund on March 25, 2022. Of those 11 items, five were loans above $5 million totaling $171.5 million. The most recent of the five was Zeckendorf Development which borrowed $136.6 million from JPMorgan Chase secured by two condo units in the 19,844-square-foot, three-unit mixed-use building (RM) on 147 East 86th Street and one other property on April 7, 2022.

Direct link to the property’s ACRIS page and link to DOB NOW portal.