Bluestar Properties pays $6.5M for 20-unit walkup in East Village

Bluestar Properties, also known as Blue Star Properties, through the entity 210 First Avenue LLC paid $6.5 million to Jovan Subotic through the entity Subotic LLC for the 20-unit residential walkup building (C7) at 210 1st Avenue in East Village, Manhattan.
The deal closed on August 26, 2022 and was recorded on September 21, 2022. The property has 11,300 square feet of built space and 532 square feet of additional air rights for a total buildable of 11,840 square feet according to PincusCo analysis of city data. The sale price per built square foot is $573 and the price per buildable square foot is $547 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 Jovan Subotic was Jovan Subotic. The signatory for Bluestar Properties was Jeffrey S. Pikus.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Bluestar Properties had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Jovan Subotic 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 Jovan Subotic, head officer and Dragica Subotic, officer. The business entity is Subotic Llc. The 11,300-square-foot property generated revenue of $663,938 or $59 per square foot, according to the most recent income and expense figures.

The property

The 210 1st Avenue parcel has frontage of 37 feet and is 80 feet deep with a total lot size of 2,960 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 $3.4 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 $100 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 18 of the 35 commercial properties representing 246,860 square feet of the 394,504 square feet. The largest owner is Croman Real Estate, followed by David Jacobson and then Highpoint Property Group.
There are no active new building construction projects on this tax block.

The majority, or 84 percent of the 392,139 square feet of built space are walkup buildings, with elevator buildings next occupying 9 percent of the space.

The buyer

The PincusCo database currently indicates that Bluestar Properties owned at least five commercial properties in New York City with 81,122 square feet and a city-determined market value of $9.6 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 71 percent of the 81,122 square feet of built space are elevator properties, with walkup properties next occupying 29 percent of the space. They are all located in Manhattan.

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