Avdoo & Partners pays $52M to Gatsby Enterprises for dev site in Lenox Hill
242 East 71st Street (Credit - Cyclomedia)
Avdoo & Partners Development through the entity 242 East 71st Street Owner LLC paid $52 million to Gatsby Enterprises through the entity 71st Street Properties -2 LLC for the development site at 242 East 71st Street composed of five tax lots including the 10-unit walkup (C7) at 242 East 71st Street, the 16-unit walkup (C7) at 1347 2nd Avenue , and the eight-unit walkup (C7) at 1343 2nd Avenue in Lenox Hill, Manhattan. The expected use is ground up development.
Crain’s New York reported in January that the parcels were in contract and would be demolished to make way for a new apartmet building.
Avdoo & Partners made the purchase through two transactions, one for $41.6 million and the other for $10.4 million. PincusCo estimated the total buildable is about 100,000 square feet yielding a price per foot of $520. A prior new construction project Gatsby filed used a floor area ratio of 12, resulting in a building with 120,449 square feet, or $431 per square foot.
On these lots, there is one active new building construction project, M00665110, for a 134-unit, 120,449 square-foot residential (R-2) building. The project was submitted by Gatsby Enterprises and filed by Isaac Ohebshalom with plans filed January 24, 2022 and permitted May 20, 2022.
The deals closed on February 4, 2025 and were recorded on February 10, 2025.
The deal closed on February 4, 2025 and was recorded on February 10, 2025.
The signatory for Gatsby Enterprises was Nader Ohebshalom , Jessica Ohebshalom , and Lisa Ohebshalom . The signatory for Avdoo & Partners Development was Shlomo Avdoo .
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Avdoo & Partners Development purchased nine properties in four transactions for a total of $49.5 million and has no record it sold any properties over the past 24 months.
The seller Gatsby Enterprises 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 Nader Ohebshalom, head officer and Lisa Shalom, officer. The business entity is 71st Street Properties. Out of the four properties, one with a total of 34,105 square feet of built space generated revenue of $481,489 per year.
Violations and lawsuits
The properties were involved in two lawsuits and zero bankruptcies over the past two years. The highest value suit was a $1 million judgment concerning a demolition filed on August 30, 2023, by Gatsby Enterprises against NYS Division of Housing and Community Renewal and Stacey McCosky. In addition, according to city public data, the properties have received two housing violations and $11,400 in OATH penalties in the last year.
Development
On these lots, there is one active new building construction project, M00665110, for a 134-unit, 120,449 square-foot residential (R-2) building. The project was submitted by Gatsby Enterprises and filed by Isaac Ohebshalom with plans filed January 24, 2022 and permitted May 20, 2022.
The block
On the tax block of 1343 2nd Avenue, PincusCo has identified the owners of eight of the 10 commercial properties representing 413,400 square feet of the 909,474 square feet. The largest owner is Manocherian Brothers, followed by Gatsby Enterprises and then United States Postal Service.
On the tax block, there was one new building construction project filed totaling 120,449 square feet. It is a 134-unit, 120,449 square-foot residential (R-2) building submitted by Gatsby Enterprises and filed by Isaac Ohebshalom with plans filed January 24, 2022 and permitted May 20, 2022.
The majority, or 92 percent of the 909,474 square feet of built space are elevator buildings, with walkup buildings next occupying 5 percent of the space.
The seller
The PincusCo database currently indicates that Gatsby Enterprises owned at least 40 commercial properties with 1,171 residential units in New York City with 837,855 square feet and a city-determined market value of $258 million. (Market value is typically about 50% of actual value.) The portfolio has $232.2 million in debt, with top three lenders as Capital One, Dime Community Bank, and Citibank respectively. Within the portfolio, the bulk, or 50 percent of the 837,855 square feet of built space are elevator properties, with walkup properties next occupying 43 percent of the space. They are all located in Manhattan.
The buyer
The PincusCo database currently indicates that Avdoo & Partners Development owned at least 14 commercial properties with 168 residential units in New York City with 158,143 square feet and a city-determined market value of $30.8 million. (Market value is typically about 50% of actual value.) The portfolio has $199.2 million in debt, with top three lenders as Valley National Bank, Bank Leumi, and Bank Hapoalim respectively. Within the portfolio, the bulk, or 22 percent of the 158,143 square feet of built space are retail properties, with mixed-use properties next occupying 22 percent of the space. They are all located in Brooklyn.
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