7-unit walkup in Turtle Bay sells for $4.4M

The entity 355 50th Owner LLC paid $4.4 million to Mark Otypka through the entity Kenthall & Co. Inc. for seven-unit residential walkup building (C7) at 355 East 50th Street in Turtle Bay, Manhattan.
The deal closed on August 31, 2022 and was recorded on September 12, 2022. The property has 6,960 square feet of built space and 13,112 square feet of additional air rights for a total buildable of 20,080 square feet according to PincusCo analysis of city data. The sale price per built square foot is $635 and the price per buildable square foot is $220 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 Mark Otypka was Mark Otypka. The signatory for the buyer was Alex Rabin of Peak Capital Advisors.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the Peak Capital Advisors purchased 19 properties in 16 transactions for a total of $106 million and has no record it sold any properties over the past 24 months.
The seller Mark Otypka 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 Helen Otypka, head officer and Carole Otypka, officer. The business entities are Brownstone Management Assoc Llc and Kenthall And Co Inc.

The property

The 355 East 50th Street parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,008 square feet. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.3 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 received $80 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 nine of the 23 commercial properties representing 292,482 square feet of the 442,767 square feet. The largest owner is Kibel Company, followed by Stonehenge NYC and then Madison Realty Capital.
There is one active new building construction project totaling 122,542 square feet. It is a 57-unit, 122,542-square-foot R-2 building developed by Scott Shnay with plans filed August 28, 2012 and permitted September 10, 2013.

The majority, or 79 percent of the 420,637 square feet of built space are elevator buildings, with walkup buildings next occupying 14 percent of the space.

The buyer

The PincusCo database currently indicates that Peak Capital Advisors owned at least 20 commercial properties in New York City with 220,438 square feet and a city-determined market value of $54.1 million. (Market value is typically about 50% of actual value.) The portfolio has $68.9 million in debt, with top three lenders as Prime Finance Partners, Prime Finance, and Walker & Dunlop respectively. Within the portfolio, the bulk, or 94 percent of the 220,438 square feet of built space are walkup properties, with mixed-use properties next occupying 6 percent of the space. The bulk, or 39 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.

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