Allied Realty pays $10.2M for 23-unit rental in Flatiron District
Allied Realty & Development through the entity Allied XXXIII LLC paid $10.2 million to Carol Mae Matzel through the entity 20 East 22nd Street, LLC for 23-unit residential elevator building (D3) at 20 East 22nd Street in Flatiron District, Manhattan.
The deal closed on March 21, 2023 and was recorded on March 22, 2023. The property has 10,512 square feet of built space and 2,436 square feet of additional air rights for a total buildable of 12,960 square feet according to PincusCo analysis of city data. The sale price per built square foot is $975 and the price per buildable square foot is $790 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 Carol Mae Matzel was Carol Mae Matzel. The signatory for Allied Realty & Development was Bahram Hakakian.
Prior sales and revenue
Prior to this transaction, PincusCo has no record that the buyer Allied Realty & Development had purchased any other properties and sold two properties in two transactions for a total of $5 million over the past 24 months.
The seller Carol Mae Matzel 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 Carol Matzel, head officer and Ralph Matzel, officer. The business entity is 20 East 22nd Street Llc. The 10,512-square-foot property generated revenue of $636,523 or $61 per square foot, according to the most recent income and expense figures.
The property
The 20 East 22nd Street parcel has frontage of 26 feet and is 98 feet deep with a total lot size of 2,592 square feet. The zoning is M1-5M which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $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 $100 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 10 of the 51 commercial properties representing 494,681 square feet of the 976,730 square feet. The largest owner is Zucker Organization, followed by Thor Equities and then Ruth Shomron.
There are no active new building construction projects on this tax block.
The majority, or 52 percent of the 849,126 square feet of built space are office buildings, with elevator buildings next occupying 28 percent of the space.
The buyer
The PincusCo database currently indicates that Allied Realty & Development owned at least 44 commercial properties in New York City with 488,462 square feet and a city-determined market value of $86.9 million. (Market value is typically about 50% of actual value.) The portfolio has $23.8 million in debt, with top three lenders as Peapack-Gladstone Bank, Santander Bank, and First Republic Bank respectively. Within the portfolio, the bulk, or 52 percent of the 488,462 square feet of built space are walkup properties, with retail properties next occupying 25 percent of the space. The bulk, or 68 percent of the built space, is in Manhattan, with Brooklyn next at 14 percent of the space.
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