Benchmark Real Estate pays $43M to Skyline Developers for 61-unit rental in Alphabet City

Benchmark Real Estate Group through the entity Benchmark 194 LLC paid $43 million to Skyline Developers through the entity 194 East Second Street, LLC for the 61-unit residential elevator building (D6) at 194 East 2nd Street in Alphabet City, Manhattan.
The deal closed on April 22, 2024 and was recorded on April 29, 2024. The property has 77,000 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $558 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 PincusCo database currently indicates that Benchmark Real Estate Group owned at least 11 commercial properties with 245,930 square feet, 346 residential units and a city-determined market value of $93.6 million. (Market value is typically about 50% of actual value.) The portfolio has $123.5 million in debt, with top three lenders as Signature Bank, MetLife, and Metropolitan Commercial Bank respectively. Within the portfolio, the bulk, or 71 percent of the 245,930 square feet of built space are elevator properties, with walkup properties next occupying 22 percent of the space. The bulk, or 75 percent of the built space, is in Manhattan, with Brooklyn next at 25 percent of the space.

The PincusCo database currently indicates that Skyline Developers owned at least 20 commercial properties with 1,395,084 square feet, 675 residential units and a city-determined market value of $371.5 million. (Market value is typically about 50% of actual value.) The portfolio has $135.2 million in debt, borrowed from Goldman Sachs. Within the portfolio, the bulk, or 51 percent of the 1,395,084 square feet of built space are elevator properties, with office properties next occupying 25 percent of the space. The bulk, or 85 percent of the built space, is in Manhattan, with Brooklyn next at 15 percent of the space.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Leonard Wilf, head officer and Orin Wilf, officer. The business entities are 194 East Second Street Llc and 194 East Second Street Llc.

The property

The parcel has frontage of 91 feet and is 152 feet deep with a total lot size of 15,010 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $25.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received two DOB violations and $150 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 $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 11 of the 21 commercial properties representing 232,052 square feet of the 362,982 square feet. The largest owner is ABJ Properties, followed by Adam Daniels and then Gatsby Enterprises.
There are no active new building construction projects on this tax block.

The majority, or 43 percent of the 362,982 square feet of built space are walkup buildings, with elevator buildings next occupying 42 percent of the space.

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