Allied Realty pays $9.8M to Gould Investors for 32-unit rental in Flatiron District

Bahram Hakakian’s Allied Realty & Development through the entity Flatiron Chateau LLC paid $9.8 million to Gould Investors through the entity Gould 28 West 26 Owner LLC for the 32-unit residential elevator building (D1) at 28 West 26th Street in Flatiron District, Manhattan. The expected use is cash flowing.
The deal closed on January 30, 2025 and was recorded on February 5, 2025. The property has 14,217 square feet of built space and 10,468 square feet of additional air rights for a total buildable of 24,690 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $685 and the price per buildable square foot is $394 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 January 8, 2015, for $13.4 million. The signatory for Gould Investors was Mark Lundy. The signatory for Allied Realty & Development was Bahram Hakakian. The contract date was November 5, 2024. Allied Realty & Development, which also uses the name Allied Management, is not affiliated with Tim Ziss’s Allied Properties or Eric Hadar’s Allied Partners.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Allied Realty & Development purchased three properties in three transactions for a total of $27.4 million and sold one property in one transaction for a total of $10.5 million over the past 24 months.
The seller Gould Investors had not purchased any other properties and sold three properties in two transactions for a total of $18.8 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Nick Jutis, head officer and Seth Kobay, officer. The business entity is Gould 28 West 26 Street Llc. The 14,217-square-foot property generated revenue of $900,514 or $63 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 32 residential units in Flatiron District has 14,217 square feet of built space and 10,468 square feet of additional air rights for a total buildable of 24,690 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 98 feet deep with a total lot size of 2,469 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $4.4 million. The most recent loan totaled $5.1 million and was provided by BankUnited on January 30, 2020. The property has 7 rent regulated units according to city tax records from 2023.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation, $1,250 in ECB penalties, and $1,600 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 $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of three of the 17 commercial properties representing 625,725 square feet of the 1,078,857 square feet. The largest owner is Rose Associates, followed by Kew Management and then William Bouton.
There are no active new building construction projects on this tax block.

The majority, or 55 percent of the 1.1 million square feet of built space are office buildings, with elevator buildings next occupying 41 percent of the space.

The seller

The PincusCo database currently indicates that Gould Investors owned at least two commercial properties with four residential units in New York City with 295,218 square feet and a city-determined market value of $112.8 million. (Market value is typically about 50% of actual value.) The portfolio has $45 million in debt, borrowed from AIG and Maverick Real Estate Partners. Within the portfolio, the bulk, or 98 percent of the 295,218 square feet of built space are office properties, with mixed-use properties next occupying 2 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Allied Realty & Development owned at least 46 commercial properties with 447 residential units in New York City with 496,226 square feet and a city-determined market value of $100 million. (Market value is typically about 50% of actual value.) The portfolio has $47.6 million in debt, with top three lenders as First Republic Bank, Peapack-Gladstone Bank, and Teachers Federal Credit Union respectively. Within the portfolio, the bulk, or 53 percent of the 496,226 square feet of built space are walkup properties, with retail properties next occupying 25 percent of the space. The bulk, or 73 percent of the built space, is in Manhattan, with Brooklyn next at 14 percent of the space.

Direct link to Acris document. link