Alon Noy pays $2.9M for residential walkup in Lower East Side

Alon Noy through the entity 241 Henry Street LLC paid $2.9 million to Nikolaos Gavalas through the entity Platinum Management Holdings, LLC for the midblock 10-unit residential walkup building at 241 Henry Street in Lower East Side, Manhattan.
The deal closed on May 12, 2022 and was recorded on June 2, 2022. The property has 5,024 square feet of built space and 2,205 square feet of additional air rights for a total buildable of 7,224 square feet according to PincusCo analysis of city data. The sale price per built square foot is $581 and the price per buildable square foot is $404 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 Nikolaos Gavalas was Nikolaos Gavalas. The signatory for Alon Noy was Alon Noy.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Alon Noy had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Nikolaos Gavalas 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 Nick Gavalas, head officer and Evagelos Gavalas, agent. The business entity is Platinum Managment Holdings Llc.

The property

The 241 Henry Street parcel has frontage of 23 feet and is 80 feet deep with a total lot size of 2,100 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.2 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 not received any significant violations 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 the Lower East Side, the majority, or 60 percent of the 33.2 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 2.5 times the average sales volume among other neighborhoods with $677.8 million in sales volume in the last two years and is the 18th highest in Manhattan. For development, Lower East Side has 2.4 times the average amount of major developments relative to other neighborhoods and is the 9th 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 seven of the 27 commercial properties representing 51,827 square feet of the 206,274 square feet. The largest owner is Vintage Group, followed by William Gottlieb Real Estate and then Chana Berkowitz. There are no active new building construction projects on this tax block.

The majority, or 76 percent of the 242,212 square feet of built space are residential walkup buildings, with specialty buildings next occupying 14 percent of the space.

Surrounding

Within a 400-foot radius of 241 Henry Street, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, one was in new building development. It was a new building permit issued on March 1, 2021 for a 84,717-square-foot R-2 building with 52 residential units at 232 East Broadway.
Of those five items, two were for major renovation including a certificate of occupancy change. They were one permit with a total initial cost of $7.2 million and one initial temporary certificate of occupancy issuance for a project that initially costed $2 million. The most recent of these two items was the temporary certificate of occupancy on July 27, 2020 for a B building with no residential units at 269 Henry Street.
Of those five items, two were loans above $5 million totaling $114.3 million. The most recent of the two was Optimum Asset Management which borrowed $44.6 million from Madison Realty Capital secured by the 44,122-square-foot, four-unit industrial (N2) on 228 East Broadway and two other properties on January 12, 2022.

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