ABJ Properties, Gorjian pay $18.35M to Steven Croman for two Manhattan walkups

ABJ Properties, Gorjian Real Estate and Abdolkarim Yaghoubi paid Steven Croman of Croman Real Estate $18.35 million for two Manhattan walkup buildings with a total of 16 residential units in two separate transactions.

In the first, ABJ Properties, Gorjian Real Estate and Abdolkarim Yaghoubi through the entity 89 Clinton Holdings LLC paid $10.6 million to Steven Croman of Croman Real Estate through the entity 89 Clinton LLC for 12-unit residential walkup building (C1) at 89 Clinton Street in Lower East Side, Manhattan.
The deal closed on June 24, 2022 and was recorded on July 11, 2022. The property has 10,381 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,019 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 August 17, 2006, for $2.9 million.

In the second, ABJ Properties, Gorjian Real Estate and Abdolkarim Yaghoubi through the entity 115-117 Ave A LLC paid $7.8 million to Croman through the entity 115 Ave A LLC for the four-unit mixed-use building (S4) at 115 Avenue A in East Village, Manhattan.
The deal closed on June 24, 2022 and was recorded on July 11, 2022.The property has 5,450 square feet of built space and 4,322 square feet of additional air rights for a total buildable of 9,768 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,425 and the price per buildable square foot is $795 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 August 2, 2012, for $3 million.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Steven Croman, head officer and Annabelle Santiago, officer. The business entities are Centennial Properties, Ny and 89 Clinton Llc. The 10,381-square-foot property generated revenue of $794,047 or $76 per square foot, according to the most recent income and expense figures.

The property

The 89 Clinton Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.4 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 17 housing violations and $550 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 neighborhood

In Lower East Side, the majority, or 60 percent of the 33.1 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 15 percent of the space. In sales, Lower East Side has 2.6 times the average sales volume among other neighborhoods with $857.8 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, Lower East Side has 2.2 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Manhattan. It had 2.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 17 of the 46 commercial properties representing 170,029 square feet of the 517,335 square feet. The largest owner is Morris Platt, followed by Croman Real Estate and then Penn South Capital. There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 616,295 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 18 percent of the space.

Surrounding

Within a 400-foot radius of 89 Clinton Street, Pincusco identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, one was in new building development. It was a new building permit issued on November 18, 2020 for a 16,040-square-foot R-2 building with 12 residential units at 66 Clinton Street.
Of those nine items, one was for major renovation including a certificate of occupancy change. It was a permit issued on March 25, 2021 for the $500,000 renovation of 8,600-square-foot R-2 building with six residential units at 155 Rivington Street.
One of those nine items was a sale which GAIA Real Estate Holdings bought the 15,038-square-foot, 26-unit rental (C7) on 102 Norfolk Street for $14.1 million from SMA Equities on June 13, 2022.
Of those nine items, six were loans above $5 million totaling $77.4 million. The most recent of the six was GAIA Real Estate Holdings which borrowed $24.3 million from Bank of America secured by the 15,038-square-foot, 26-unit rental (C7) on 102 Norfolk Street and two other properties on June 13, 2022.

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