Arel Capital, CBSK Ironstate sell 3 apartments for $55M at 1228 Madison in Carnegie Hill

Arel Capital and CBSK Ironstate through the entity 1228 Madison Development Lessee LLC sold three apartment units for a total of $54.97 million at the midblock 15-unit residential elevator building at 1228 Madison Avenue in Carnegie Hill, Manhattan.

Unit TR PH sold for $24.8 million, unit DU PH sold for $19.7 million and unit 9 sold for $10.5 million.

The property

The 1228 Madison Avenue parcel has frontage of 75 feet and is 75 feet deep with a total lot size of 5,625 square feet. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $7.7 million. The most recent loan totaled $70 million and was provided by Madison Realty Capital on April 25, 2022.

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 $15,000 in ECB penalties and $16,000 in OATH penalties in the last year.

The neighborhood

In Carnegie Hill, the majority, or 76 percent of the 38.3 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 9 percent of the space. In sales, Carnegie Hill has 3 times the average sales volume among other neighborhoods with $817.3 million in sales volume in the last two years and is the 14th highest in Manhattan. For development, Carnegie Hill has had very little major development activity relative to other neighborhoods.It had 709,333 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the six commercial properties representing 65,381 square feet of the 336,153 square feet. The two identified owners are CBSK Ironstate and Abro Management.

The majority, or 87 percent of the 1.4 million square feet of built space are residential elevator buildings, with specialty buildings next occupying 13 percent of the space.

Surrounding

Within a 400-foot radius of 1228 Madison Avenue, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, two were for major renovation including a certificate of occupancy change. They were two permit applications with a total initial cost of $2.6 million. The most recent of these two items was the filing on May 2, 2022 for a 4,253-square-foot A-3 building with zero residential units at 5 East 89th Street.
Of those five items, three were sales above $5 million totaling $98.6 million. The most recent of the three was Saint David’S School which bought the 9,780-square-foot, one-unit townhouse (A4) on 15 East 88th Street for $26.5 million from Paul Fribourg and Josabeth Fribourg on June 16, 2022.

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