Bixby Bridge forecloses on Little Italy retail that had $8.1M loan

Bixby Bridge Capital through the entity Broome Lender LLC acquired title through a judicial foreclosure from former owners Arash Rahmani, Ebrahim Khalili, Omid Rahmani, Shawn Khodadadian, and Rabin Rahmani of the retail condo at 430 Broome Street in Little Italy, Manhattan. The expected use is cash flowing. The former loan was $8.1 million and the transfer value was $10.5 million.
The deal closed on September 20, 2024 and was recorded on October 3, 2024. The property has 3,151 square feet of built space according to a PincusCo analysis of city data. The transfer price per built square foot is $3,317 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 October 8, 2014, for $3.1 million. This was a Manhattan foreclosure through index number 850198/2021, with Bixby Bridge Capital as lender taking title to the property. This is not arms length since the new owner was the lender. The former owners bought the property for $3.1 million on 10/8/2014, then in 2016 increased the debt to $8.1 million. Bixby bought the note in June 2021. The signatory for Bixby Bridge Capital was David Rotenberg. The contract date was August 21, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Bixby Bridge Capital had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Arash Rahmani had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail condo in Little Italy has 3,151 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 3,151 square feet. The city-designated market value for the property in 2022 is $914,341.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 25, 2013. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by CROSBY AND BROOME LLC to create 4 residential units and 1 commercial units in a building at 430 Broome Street in Little Italy, Manhattan, called Crosby Street Condominium that has a $14.3 million sellout, according to an February 08, 2013 submission to the New York State Attorney General. The principal of the sponsor, CROSBY AND BROOME LLC, was Nathan Kornfeld.

The neighborhood

In Little Italy, The bulk, or 33 percent of the 4.1 million square feet of commercial built space are office buildings, with walkup buildings next occupying 25 percent of the space. In sales, Little Italy has near average sales volume among other neighborhoods with $263.2 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Little Italy has had very little major development activity relative to other neighborhoods.It had 223,517 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 13 commercial properties representing 171,776 square feet of the 234,741 square feet. The largest owner is Heller Properties, followed by P. Zaccaro and then BNF Capital.
On the tax block, there was one new building construction project filed totaling 23,445 square feet. It is a 12-unit, 23,445 square-foot residential (J-2) building submitted by John Zaccaro Jr. with plans filed April 17, 2008 and permitted February 9, 2018.

The majority, or 58 percent of the 234,741 square feet of built space are office buildings, with elevator buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Shawn Khodadadian owned at least two commercial properties with five residential units in New York City with 25,067 square feet and a city-determined market value of $12.3 million. (Market value is typically about 50% of actual value.) The portfolio has $18.8 million in debt, borrowed from Republic First Bank and JPMorgan Chase. Within the portfolio, the bulk, or 59 percent of the 25,067 square feet of built space are office properties, with elevator properties next occupying 41 percent of the space. They are all located in Manhattan.