Behrooz Hedvat pays $6.3M to Forum Capital Partners for 11-unit building in Washington Heights

Behrooz Hedvat through the entity Devarim 26 LLC paid $6.3 million to Forum Capital Partners through the entity 703 West 171 Street Condominium LLC for 11-unit residential elevator building (D7) at 703 West 171st Street in Washington Heights, Manhattan.
The deal closed on January 26, 2023 and was recorded on February 2, 2023. The property has 17,550 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $356 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 seller bought the property on February 23, 2016, for $5.1 million. The signatory for Forum Capital Partners was Chris Milner. The signatory for Behrooz Hedvat was Behrooz Hedvat. The contract date was June 1, 2021.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Behrooz Hedvat had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Forum Capital Partners 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 Paul Fornaby, head officer and Rrp 110 Lion Llc, shareholder. The business entity is 703 West 171 Street Condominium Llc. The 17,550-square-foot property generated revenue of $503,155 or $29 per square foot, according to the most recent income and expense figures.

The property

The 703 West 171st Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.5 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 received $600 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 block

On this tax block, PincusCo has identified the owners of 31 of the 56 commercial properties representing 4,042,186 square feet of the 6,450,420 square feet. The largest owner is Viking Management, followed by Sugar Hill Capital Partners and then Abro Management.
There are no active new building construction projects on this tax block.

The majority, or 71 percent of the 6.5 million square feet of built space are specialty buildings, with elevator buildings next occupying 18 percent of the space.

The buyer

The PincusCo database currently indicates that Behrooz Hedvat owned at least four commercial properties in New York City with 29,823 square feet and a city-determined market value of $12.5 million. (Market value is typically about 50% of actual value.) The portfolio has $51.4 million in debt, with top three lenders as Ladder Capital, Signature Bank, and Xyston Group respectively. Within the portfolio, the bulk, or 45 percent of the 29,823 square feet of built space are walkup properties, with office properties next occupying 29 percent of the space. They are all located in Manhattan.

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