Chabad Young Professionals pays $5M to KP Developers for two properties in Chelsea
Chabad Young Professionals through the entity Chabad Young Professionals, Inc. paid $5 million to KP Developers through the entity Mott Of Fr LLC for the specialty building (W9) at 247 West 24th Street and a development parcel on West 25th Street in Chelsea, Manhattan.
The deal closed on June 26, 2023 and was recorded on June 28, 2023. The two properties have 3,820 square feet of built space and 7,735 square feet of additional air rights for a total buildable of 11,552 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,308 and the price per buildable square foot is $432 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 KP Developers was Ryan Pedram. The signatory for Chabad Young Professionals was Levi Shmotkin. Levi Shmotkin is president of Chabad Young Professionals.
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 247 West 24th Street.
Prior sales and revenue
Prior to this transaction, PincusCo has no record that the buyer Chabad Young Professionals had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller KP Developers purchased four properties in two transactions for a total of $11.9 million and sold two properties in two transactions for a total of $7 million over the same time period.
The property
The specialty building with 1 residential units in Chelsea has 3,820 square feet of built space and 7,735 square feet of additional air rights for a total buildable of 11,552 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 88 feet deep with a total lot size of 1,759 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $800,000.
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 one DOB violation and $3,380 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 neighborhood
In Chelsea, The bulk, or 36 percent of the 52.4 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 5th highest sale turnover among other neighborhoods in the city with $2.4 billion in sales volume in the last two years. For development, Chelsea has 2 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Manhattan. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
The block
On the tax block of 247 West 24th Street, PincusCo has identified the owners of 10 of the 17 commercial properties representing 477,245 square feet of the 530,199 square feet. The largest owner is Shel Capital, followed by Sabet Group and then S.W. Management.
On the tax block, there was one new building construction project filed totaling 58,021 square feet. It is a 64-unit, 58,021 square-foot residential (R-2) building submitted by Red Apple Group and filed by Maria Rosenfeld with plans filed May 25, 2022 and it has not been permitted yet.
The majority, or 76 percent of the 530,199 square feet of built space are specialty buildings, with walkup buildings next occupying 13 percent of the space.
The seller
The PincusCo database currently indicates that KP Developers owned at least 19 commercial properties with 160 residential units in New York City with 146,160 square feet and a city-determined market value of $28.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 48 percent of the 146,160 square feet of built space are elevator properties, with walkup properties next occupying 21 percent of the space. The bulk, or 56 percent of the built space, is in Manhattan, with Brooklyn next at 29 percent of the space.
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