Alex Jaehak Han pays $9.2M to Benchmark for 14-unit walkup in East Village

Alex Jaehak Han through the entity Deco Property Advisors LLC paid $9.2 million to Benchmark Real Estate Group through the entity 341 East 9th Realty Lp for the 14-unit residential walkup building (C7) at 341 East 9th Street in East Village, Manhattan.
The deal closed on June 24, 2022 and was recorded on July 11, 2022. The property has 6,285 square feet of built space and 2,928 square feet of additional air rights for a total buildable of 9,224 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,463 and the price per buildable square foot is $997 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 May 18, 2016, for $7 million.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Jordan Vogel, head officer and Aaron Feldman, officer. The business entities are 341 East 9th Realty Lp and 341 East 9th Street Lp. The 6,285-square-foot property generated revenue of $576,856 or $92 per square foot, according to the most recent income and expense figures.

The property

The 341 East 9th Street parcel has frontage of 25 feet and is 92 feet deep with a total lot size of 2,306 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 $2.4 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 one DOB violation, $1,280 in ECB penalties, and $1,280 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 East Village, the bulk, or 36 percent of the 19 million square feet of commercial built space are residential walkup buildings, with residential elevator buildings next occupying 28 percent of the space. In sales, East Village has 1.8 times the average sales volume among other neighborhoods with $599.1 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, East Village has had very little major development activity relative to other neighborhoods.It had 273,134 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 16 of the 35 commercial properties representing 178,553 square feet of the 382,285 square feet. The largest owner is David Ogrin, followed by Icon Realty Management and then Kushner Companies. There are no active new building construction projects on this tax block.

The majority, or 73 percent of the 373,478 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 20 percent of the space.

Surrounding

Within a 400-foot radius of 341 East 9th Street, PincusCo identified 15 commercial real estate items of interests occurred over the past 24 months.
Of those 15 items, five were sales above $5 million totaling $37.2 million. The most recent of the five was Aya which bought the 9,540-square-foot, 10-unit rental (C4) on 67 St Marks Place for $5.4 million from Kokot Realty Enterprises on June 28, 2022.
Of those 15 items, 10 were loans above $5 million totaling $193.7 million. The most recent of the 10 was Roman Bohdanowycz which borrowed $6 million from JPMorgan Chase secured by the 13,234-square-foot, 25-unit rental (C7) on 324 East 9th Street on June 8, 2022.

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