Buyer in care of Relo Redac pays $7M to Gatsby Enterprises for 20-unit walkup in Hell’s Kitchen

437 West 46th Street (Credit - Google)
Relo Redac Inc. through the entity 437 West 46sg LLC paid $7 million to Nader Ohebshalom’s Gatsby Enterprises through the entity Profile Enterprises 1 LLC for the 20-unit residential walkup building (C4) at 437 West 46th Street in Hell’s Kitchen, Manhattan.
The deal closed on July 18, 2022 and was recorded on July 25, 2022.The property has 9,390 square feet of built space and 6,530 square feet of additional air rights for a total buildable of 15,916 square feet according to PincusCo analysis of city data. The sale price per built square foot is $745 and the price per buildable square foot is $439 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 Gatsby Enterprises was Nader Ohebshalom. The signatory for Relo Redac Inc. was Neal Weinstein. The buyer is an anonymous firm at the address of the Japan-based management company Relo Redac. A company affiliated with Relo Radic recently sold the neighboring building at 439 West 46th Street to Sanyo Chemical. Neal Weinstein is an attorney.
Prior sales and revenue
Prior to this transaction, PincusCo has no record that the buyer Relo Redac Inc. had purchased any other properties and an affiliate sold one properties in one transactions for a total of $13 million over the past 24 months.
The seller Gatsby Enterprises 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 Nader Ohebshalom, head officer and Lisa Shalom, officer. The business entities are Profile Enterprises 1, Llc and Profile Enterprises 1,Llc. The 9,390-square-foot property generated revenue of $601,064 or $64 per square foot, according to the most recent income and expense figures.
The property
The 437 West 46th Street parcel has frontage of 26 feet and is 100 feet deep with a total lot size of 2,644 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 $3.7 million.
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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 not received any significant violations 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 seven of the 31 commercial properties representing 108,282 square feet of the 361,355 square feet. The largest owner is Arbor Management Acquisition Company aka AMAC Holdings, followed by Leeds Associates and then Thomas Makkos. There are no active new building construction projects on this tax block.
The majority, or 65 percent of the 361,355 square feet of built space are walkup buildings, with elevator buildings next occupying 27 percent of the space.
The seller
The PincusCo database currently indicates that Gatsby Enterprises owned at least 37 commercial properties in New York City with 696,585 square feet and a city-determined market value of $210.8 million. (Market value is typically about 50% of actual value.) The portfolio has $38 million in debt, borrowed from Capital One. Within the portfolio, the bulk, or 51 percent of the 696,585 square feet of built space are walkup properties, with elevator properties next occupying 47 percent of the space. They are all located in Manhattan.
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