Bluestar Properties pays $23.45M for six walkups in East Village with 121 units

Jeffrey Pikus’s Bluestar Properties paid $23.45M to the Kessler family for six walkups in East Village with 121 units in five separate transactions. The addresses are 72-74 East 7th Street, 229 East 11th Street, 314 East 9th Street, 219 East 10th Street and 260 East 10th Street.

In the first transaction, Bluestar Properties through the entity 72-74 East 7th LLC paid $7.6 million to Karen Kessler through the entity K&T Realty Associates, LLC for the 22-unit residential walkup building (C7) at 72 East 7th Street in East Village, Manhattan and 21-unit residential walkup building (C7) at 74 East 7th Street in East Village, Manhattan.
The deal closed on January 17, 2024 and was recorded on January 25, 2024. The two properties have 21,840 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $348 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.)

In the second, Bluestar Properties through the entity 229 East 11th LLC paid $4.6 million to Karen Kessler through the entity K&T Realty Associates, LLC for the 24-unit residential walkup building (C7) at 229 East 11th Street in East Village, Manhattan. The deal closed on January 17, 2024 and was recorded on January 25, 2024. The property has 12,024 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $384 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.)

In the third, Bluestar Properties through the entity 314 East 9th LLC paid $4.3 million to Karen Kessler through the entity K&T Realty Associates, LLC for the 16-unit residential walkup building (C7) at 314 East 9th Street in East Village, Manhattan. The deal closed on January 17, 2024 and was recorded on January 25, 2024. The property has 10,410 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $409 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.)

In the fourth, Bluestar Properties through the entity 219 East 10th LLC paid $4.2 million to Karen Kessler through the entity K&T Realty Associates, LLC for the 21-unit residential walkup building (C7) at 219 East 10th Street in East Village, Manhattan. The deal closed on January 17, 2024 and was recorded on January 25, 2024. The property has 10,500 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $399 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.)

In the fifth, Bluestar Properties through the entity 260 East 10th LLC paid $2.8 million to Karen Kessler through the entity K&T Realty Associates, LLC for the 17-unit residential walkup building (C4) at 260 East 10th Street in East Village, Manhattan. The deal closed on January 17, 2024 and was recorded on January 25, 2024. The property has 10,309 square feet of built space and 25 square feet of additional air rights for a total buildable of 10,332 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $267 and the price per buildable square foot is $266 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 signatory for Karen Kessler was Michael D. Morici Jr. The signatory for Bluestar Properties was Jeffrey Pikus. The contract date was June 15, 2023.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 72 East 7th Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Bluestar Properties purchased one property in one transaction for a total of $6.5 million and has no record it sold any properties over the past 24 months.
The seller Karen Kessler 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 Karen Kessler, head officer and Calynne Oyolokor, officer. The business entities are Firstservice Residential and K&T Realty Associates.

The property

The residential walkup building with 22 residential units in East Village has 21,840 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 90 feet deep with a total lot size of 2,271 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The property is in the East Village/Lower East Side Historic District. The city-designated market value for the property in 2022 is $2.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $275 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 the tax block of 72 East 7th Street, PincusCo has identified the owners of 18 of the 37 commercial properties representing 175,349 square feet of the 335,658 square feet. The largest owner is Neal Kurzner, followed by Movcap and then Marin Management.
There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 335,658 square feet of built space are walkup buildings, with elevator buildings next occupying 11 percent of the space.

The seller

The PincusCo database currently indicates that Karen Kessler owned at least six commercial properties with 121 residential units in New York City with 65,083 square feet and a city-determined market value of $16.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Bluestar Properties owned at least six commercial properties with 149 residential units in New York City with 92,422 square feet and a city-determined market value of $13.5 million. (Market value is typically about 50% of actual value.) The portfolio has $28.6 million in debt, borrowed from Dime Community Bank and Sterling National Bank. Within the portfolio, the bulk, or 63 percent of the 92,422 square feet of built space are elevator properties, with walkup properties next occupying 37 percent of the space. They are all located in Manhattan.

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