Dalavai Holdings pays $7M to Icon for 20-unit walkup in Hell’s Kitchen

Dalavai Holdings through the entity Dalavai Holdings LLC paid $7 million to Icon Realty Management through the entity 406 West 48 Realty LLC for the 20-unit residential walkup building (C4) at 406 West 48th Street in Hell’s Kitchen, Manhattan. The expected use is cash flowing.
The deal closed on April 25, 2025 and was recorded on May 2, 2025. The property has 9,750 square feet of built space and 5,371 square feet of additional air rights for a total buildable of 15,110 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $717 and the price per buildable square foot is $463 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 seller bought the property on May 29, 2020, for $5.8 million. The signatory for Icon Realty Management was Terrence Lowenberg . The signatory for Dalavai Holdings was Sudheerraj R. Dalavai . The contract date was January 28, 2025.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Dalavai Holdings had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Icon Realty Management had not purchased any other properties and sold five properties in five transactions for a total of $51.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Terrence Lowenberg, head officer and Frank Armeni, site manager. The business entity is 406 West 48 Realty Llc. The 9,750-square-foot property generated revenue of $590,393 or $61 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 20 residential units in Hell’s Kitchen has 9,750 square feet of built space and 5,371 square feet of additional air rights for a total buildable of 15,110 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,510 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 $2.6 million. The most recent loan totaled $9.4 million and was provided by Webster Bank on February 16, 2023. The property has 3 rent regulated units according to city tax records from 2023.

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 $620 in ECB penalties and $620 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 block

On this tax block, PincusCo has identified the owners of 13 of the 28 commercial properties representing 201,074 square feet of the 327,658 square feet. The largest owner is Fairstead, followed by Project Renewal and then Karl Slovin.
There are no active new building construction projects on this tax block.

The majority, or 60 percent of the 327,658 square feet of built space are walkup buildings, with specialty buildings next occupying 28 percent of the space.

The seller

The PincusCo database currently indicates that Icon Realty Management owned at least 94 commercial properties with 1,355 residential units in New York City with 1,062,060 square feet and a city-determined market value of $393.1 million. (Market value is typically about 50% of actual value.) The portfolio has $496.1 million in debt, with top three lenders as Series 2019-Icon, Signature Bank, and BCB Community Bank respectively. Within the portfolio, the bulk, or 64 percent of the 1,062,060 square feet of built space are walkup properties, with elevator properties next occupying 12 percent of the space. The bulk, or 87 percent of the built space, is in Manhattan, with Brooklyn next at 13 percent of the space.

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