7G Group acquires office in Little Italy by deed-in-lieu, former loan was $14.9M

7G Group through the entity 7G 123 Lafayette Partners LLC paid $21.8 million through a deed-in-lieu of foreclosure the office building (O5) at 123 Lafayette Street in Little Italy, Manhattan. The former loan had an original principal of $14.9 million but had a judgment of $21.76 million, according to the most recent notice of sale. The expected use is cash flowing. The former owner was First Atlantic Capital through the entity 123 Lafayette LLC.
The deal closed on August 15, 2025 and was recorded on August 20, 2025. The property has 17,260 square feet of built space and 15,005 square feet of additional air rights for a total buildable of 32,270 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,265 and the price per buildable square foot is $676 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 seller bought the property on December 23, 2020, for $1.7 million. The signatory for First Atlantic Capital was Roberto Buaron . The signatory for 7G Group was Jonathan Krasner . The contract date was August 15, 2025.

First Atlantic Capital sold a multifamily building in Harlem for $7.3 million on August 4, 2025.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer 7G Group purchased one property in one transaction for a total of $23.1 million and has no record it sold any properties over the past 24 months.
The seller First Atlantic Capital purchased three properties in one transaction for a total of $18.8 million and sold four properties in two transactions for a total of $26.1 million over the same time period. The 17,260-square-foot property generated revenue of $1.7 million or $99 per square foot, according to the most recent income and expense figures.

The property

The office building in Little Italy has 17,260 square feet of built space and 15,005 square feet of additional air rights for a total buildable of 32,270 square feet according to a PincusCo analysis of city data. The parcel has frontage of 62 feet and is 51 feet deep with a total lot size of 3,227 square feet. The zoning is M1-5/R10 which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $8.9 million. The most recent loan totaled 0.0 and was provided by 7G Realty on July 24, 2024.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $14.9 million commercial foreclosure concerning a loan filed on August 20, 2024, by 7G Realty and Jonathan Krasner against First Atlantic Capital. In addition, according to city public data, the property has received $50 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 13, 2016. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Little Italy, The bulk, or 33 percent of the 4.1 million square feet of commercial built space are office buildings, with walkup buildings next occupying 25 percent of the space. In sales, Little Italy has 1.3 times the average sales volume among other neighborhoods with $375.8 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, Little Italy has had very little major development activity relative to other neighborhoods.It had 114,616 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. There were three pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the five commercial properties representing 38,960 square feet of the 86,160 square feet. The two identified owners are First Atlantic Capital and Stellar Management.
There are no active new building construction projects on this tax block.

The majority, or 55 percent of the 86,160 square feet of built space are retail buildings, with office buildings next occupying 45 percent of the space.

The seller

The PincusCo database currently indicates that First Atlantic Capital owned at least one commercial property in New York City with 17,260 square feet and a city-determined market value of $10.2 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

The buyer

The PincusCo database currently indicates that 7g Group owned at least one commercial property in New York City with 30,906 square feet and a city-determined market value of $10.5 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

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