Alonzo Properties NYC pays $6M to Downtown Capital for mixed-use in Lenox Hill

Alonzo Properties NYC through the entity 428 East 75 St. Ny LLC paid $6 million to Downtown Capital through the entity 4000 East 102 St. Corp. for the midblock mixed-use building at 430 East 75th Street in Lenox Hill, Manhattan.
The deal closed on March 30, 2022 and was recorded on April 15, 2022.The property has 6,910 square feet of built space and 7,797 square feet of additional air rights for a total buildable of 14,712 square feet according to PincusCo analysis of city data. The sale price per built square foot is $868 and the price per buildable square foot is $407 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 Downtown Capital was Gary M. Katz. The signatory for Natalie Elizabeth Alonzo-Brillant and Rudolf B. Alonzo was Natalie Elizabeth Alonzo-Brillant. Gary M. Katz is a managing partner of Downtown Capital. https://www.linkedin.com/in/gary-katz-458b715/ Natalie Elizabeth Alonzo-Brillant and Rudolf B. Alonzo were signatories on the acquisition loan for the property.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Natalie Elizabeth Alonzo-Brillant had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Downtown Capital purchased one properties in one transactions for a total of $9.3 million and sold six properties in five transactions for a total of $82 million over the same time period.

The property

The 430 East 75th Street parcel has frontage of 36 feet and is 102 feet deep with a total lot size of 3,678 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 $1.4 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $650 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 Lenox Hill, the majority, or 56 percent of the 91.2 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Lenox Hill has the 3rd highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Lenox Hill has had very little major development activity relative to other neighborhoods.It had 436,108 square feet of commercial and multi-family construction under development in the last two years, which represents 0.48 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of seven of the 22 commercial properties representing 97,075 square feet of the 257,740 square feet. The largest owner is HF Capital, followed by Friedman Management and then Mike Elsayed. There is one active new building construction project totaling 175,878 square feet. It is a 31-unit, 175,878-square-foot R-2 building developed by Dmitri Konon with plans filed November 3, 2021 and it has not been permitted yet.

the majority, or 40 percent of the 409,533 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 40 percent of the space.

The seller

The PincusCo database currently indicates that Downtown Capital owned at least one commercial property with 15,600 square feet and a city-determined market value of $1.7 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Manhattan.

Surrounding

Within a 400-foot radius of 430 East 75th Street, Pincusco identified seven commercial real estate items of interests occurred over the past 24 months.
Of those seven items, one was in new building development. It was a new building permit application filed on November 3, 2021 for a 128,205-square-foot R-2 building with 31 residential units at 1393 York Avenue.
Of those seven items, three were sales above $5 million totaling $49.9 million. The most recent of the three was Tissa Management which bought the 7,612-square-foot, 26-unit rental (C4) on 439 East 74th Street and two other properties for $14.1 million from Caporusso family on October 4, 2021.
Of those seven items, three were loans above $5 million totaling $105 million. The most recent of the three was HF Capital which borrowed $60 million from H.I.G. Capital secured by the 15,935-square-foot, 26-unit rental (C4) on 439 East 74th Street and 11 other properties on October 8, 2021.

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