Cobby Gorjian, Parag Sawhney pay $2.5M for 12-unit mixed-use in Lower East Side

Cobby Gorjian’s Gorjian Real Estate Group and Parag Sawhney’s VRH Inc. through the entity GG 137 Orchard LLC paid $2.5 million to Avi Sacks through the entity Shearl Realty Corp., for the 12-unit mixed-use building (K4) at 137 Orchard Street in Lower East Side, Manhattan. The expected use is cash flowing.
The deal closed on November 13, 2024 and was recorded on December 10, 2024. The property has 10,983 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $227 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 Avi Sacks was Charles R. Stark. The signatory for Gorjian Real Estate Group and VRH Inc. was Cobby Gorjian and Parag Sawhney. The contract date was September 24, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Gorjian Real Estate Group purchased two properties in two transactions for a total of $20.4 million and has no record it sold any properties over the past 24 months.
The seller Avi Sacks 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 Avi Saks, head officer and Dawn Mintzer, officer. The business entity is Shearl Realty Corp.

The property

The mixed-use building with 12 residential units in Lower East Side has 10,983 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 87 feet deep with a total lot size of 2,190 square feet. The zoning is C4-4A which allows for up to 4 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. 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 property for the past 24 months. In addition, according to city public data, the property has received $1,250 in ECB penalties and $1,250 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 Lower East Side, The majority, or 51 percent of the 23.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Lower East Side has near average sales volume among other neighborhoods with $260.9 million in sales volume in the last two years and is the 29th highest in Manhattan. For development, Lower East Side has had very little major development activity relative to other neighborhoods.It had 659,157 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 25 commercial properties representing 72,759 square feet of the 322,439 square feet. The largest owner is Vintage Group, followed by William Gottlieb Real Estate and then Sma Equities.
There are no active new building construction projects on this tax block.

The majority, or 62 percent of the 322,439 square feet of built space are walkup buildings, with hotel buildings next occupying 20 percent of the space.

The buyer

The PincusCo database currently indicates that Gorjian Real Estate Group owned at least 11 commercial properties with 140 residential units in New York City with 258,753 square feet and a city-determined market value of $84.7 million. (Market value is typically about 50% of actual value.) The portfolio has $12 million in debt, borrowed from Citibank. Within the portfolio, the bulk, or 48 percent of the 258,753 square feet of built space are office properties, with walkup properties next occupying 36 percent of the space. They are all located in Manhattan.

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