City Skyline pays $7.5M to East Coast Holdings for three walkups in East Harlem

City Skyline Realty through the entity 318-322 East 126 LLC paid $7.5 million to East Coast Holdings through the entity 318-324 126th LLC for 28-unit residential walkup building (C7) at 322 East 126th Street in East Harlem, Manhattan, 20-unit residential walkup building (C4) at 320 East 126th Street in East Harlem, Manhattan, and 20-unit residential walkup building (C4) at 318 East 126th Street in East Harlem, Manhattan.
The deal closed on August 8, 2022 and was recorded on August 12, 2022. The three properties have 34,684 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $217 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 East Coast Holdings was Mark Mehlman. The signatory for City Skyline Realty was Anthony Simari.

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 322 East 126th Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer City Skyline Realty purchased nine properties in eight transactions for a total of $48.5 million and has no record it sold any properties over the past 24 months.
The seller East Coast Holdings had not purchased any other properties and sold four properties in four transactions for a total of $15.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Moshe Mehlman, head officer and Abe Lipman, agent. The business entity is 318-324 126th Llc. The three properties with a total of 34,684 square feet of built space generated revenue of $1 million per year or $29 per square foot. The sale price per square foot was $218.

The property

The 322 East 126th Street parcel has frontage of 41 feet and is 99 feet deep with a total lot size of 4,163 square feet. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $2.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received 165 housing violations and $1,600 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 the tax block of 322 East 126th Street, PincusCo has identified the owners of five of the 14 commercial properties representing 51,914 square feet of the 96,517 square feet. The largest owner is East Coast Holdings, followed by New York City Department of Housing Preservation and Development and then Boaz Aharoni.
There is one active new building construction project totaling 8,667 square feet. It is a zero-unit, 8,667-square-foot F-1 building developed by Julio Mulkay with plans filed December 21, 2017 and permitted October 30, 2020.

the majority, or 63 percent of the 96,517 square feet of built space are walkup buildings, with elevator buildings next occupying 20 percent of the space.

The seller

The PincusCo database currently indicates that East Coast Holdings owned at least 19 commercial properties in New York City with 376,247 square feet and a city-determined market value of $35.9 million. (Market value is typically about 50% of actual value.) The portfolio has $28.6 million in debt, with top three lenders as Peapack-Gladstone Bank, BNB Bank, and PIMCO respectively. Within the portfolio, the bulk, or 56 percent of the 376,247 square feet of built space are walkup properties, with elevator properties next occupying 40 percent of the space. The bulk, or 39 percent of the built space, is in Manhattan, with Brooklyn next at 33 percent of the space.

The buyer

The PincusCo database currently indicates that City Skyline Realty owned at least 41 commercial properties in New York City with 1,042,210 square feet and a city-determined market value of $74.8 million. (Market value is typically about 50% of actual value.) The portfolio has $62.3 million in debt, with top three lenders as Arbor Realty Trust, New York Community Bank, and Signature Bank respectively. Within the portfolio, the bulk, or 68 percent of the 1,042,210 square feet of built space are walkup properties, with elevator properties next occupying 32 percent of the space. The bulk, or 58 percent of the built space, is in Manhattan, with Bronx next at 42 percent of the space.

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