Anonymous buyer pays $10.5M for 35-unit condo dev site in Chelsea
An anonymous Williamsburg-based buyer through the entity 246 West 18th Street Land LLC paid $10.5 million following a bankruptcy filed by Joseph Nabavi through the entity 246-18 Realty LLC, for the 35-unit condominium project development site at 246 West 18th Street in Chelsea, Manhattan. The expected use is ground up development. The building that currently stands on the parcel is expected to be demolished and replaced with a new structure.
The deal closed on August 5, 2024 and was recorded on August 15, 2024. The property has 15,371 square feet of built space and 12,322 square feet of additional air rights for a total buildable of 27,679 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $683 and the price per buildable square foot is $379 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 Joseph Nabavi was Joseph Nabavi. The signatory for the anonymous buyer was Jean L. Chou. The contract date was July 24, 2024. Joseph Nabavi filed for bankruptcy protection in the U.S. Bankruptcy court in the Southern District through case number 23-10796. The first $16 million of the $32 million construction loan is without tax, according to the bankruptcy filings.
The buyer financed the purchase and a portion of the construction with a $16 million loan from SME Capital Ventures, which was the debt holder in the bankruptcy.
The property
The residential walkup building with 39 residential units in Chelsea has 15,371 square feet of built space and 12,322 square feet of additional air rights for a total buildable of 27,679 square feet according to a PincusCo analysis of city data. The parcel has frontage of 26 feet and is 92 feet deep with a total lot size of 4,598 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.4 million. The most recent loan totaled 0.0 and was provided by SME Capital Ventures on March 3, 2023.
Violations and lawsuits
The property was involved in one lawsuit and one bankruptcy over the past two years. The suit was a $1 million judgment concerning a unsafe building filed on October 31, 2023, by City of New York against Joseph Nabavi. The bankruptcy was filed on May 19, 2023, by Joseph Navabi, Neville Grey, and Tatsumara Kazuko citing assets of $10 million. In addition, according to city public data, the property has received one DOB violation, $1,250 in ECB penalties, and $14,225 in OATH penalties in the last year.
Development
On the lot, there is one active new building construction project, M00502161, for a 29-unit building. The project was submitted by Joseph Nabavi with plans filed September 24, 2021 and it has not been permitted yet.
The block
On this tax block, PincusCo has identified the owners of 11 of the 16 commercial properties representing 454,176 square feet of the 576,448 square feet. The largest owner is Pimco, followed by California Public Employees Retirement System and then Kano Real Estate Investors.
On the tax block, there was one new building construction project filed totaling 100 square feet. It is a 26-unit, 100 square-foot mercantile (M) building submitted by Joseph Nabavi with plans filed September 24, 2021 and it has not been permitted yet.
The majority, or 50 percent of the 576,448 square feet of built space are office buildings, with retail buildings next occupying 19 percent of the space.
The seller
The PincusCo database currently indicates that Joseph Nabavi owned at least two commercial properties with 66 residential units in New York City with 15,371 square feet and a city-determined market value of $5.6 million. (Market value is typically about 50% of actual value.) The portfolio has $8 million in debt, borrowed from Emerald Creek Capital and SME Capital Ventures. Within the portfolio, all identified are walkup properties. They are all located in Manhattan.
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