Davean Holdings pays $18.5M to Fairstead for residential walkup in East Village

Davean Holdings through the entity 81-83 St. Marks Place Owner LLC paid $18.5 million to Fairstead through the entity 81-83 St Marks Realty LLC for the 24-unit residential walkup building (C7) at 81 St Marks Place in East Village, Manhattan.
The deal closed on August 10, 2022 and was recorded on August 22, 2022. The property has 18,570 square feet of built space and 234 square feet of additional air rights for a total buildable of 18,784 square feet according to PincusCo analysis of city data. The sale price per built square foot is $996 and the price per buildable square foot is $984 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 January 26, 2015, for $18.5 million. The signatory for Fairstead was Jeffrey Goldberg. The signatory for Davean Holdings was Sean Lefkovits.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Davean Holdings purchased 15 properties in 14 transactions for a total of $77.2 million and sold one properties in one transactions for a total of $2.2 million over the past 24 months.
The seller Fairstead purchased one properties in one transactions for a total of $10.8 million and sold two properties in two transactions for a total of $20.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Kristen Miller, head officer and Jennifer Lau, agent. The business entities were Fairstead Management Llc and 81-83 St Marks Realty Llc. The 18,570-square-foot property generated revenue of $1.3 million or $71 per square foot, according to the most recent income and expense figures.

The property

The 81 St Marks Place parcel has frontage of 50 feet and is 93 feet deep with a total lot size of 4,696 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.1 million.The most recent loan totaled $14 million and was provided by Signature Bank on January 10, 2020.

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 received $625 in ECB penalties, 10 housing violations, and $1,825 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 this tax block, PincusCo has identified the owners of 11 of the 41 commercial properties representing 127,101 square feet of the 386,406 square feet. The largest owner is Fairstead, followed by Organization for Defense of Four Freedoms for Ukraine and then Rita Chou.
There are no active new building construction projects on this tax block.

The majority, or 69 percent of the 386,406 square feet of built space are walkup buildings, with retail buildings next occupying 8 percent of the space.

The seller

The PincusCo database currently indicates that Fairstead owned at least 90 commercial properties in New York City with 3,941,306 square feet and a city-determined market value of $334.5 million. (Market value is typically about 50% of actual value.) The portfolio has $376.5 million in debt, with top three lenders as Berkshire Residential Investments, Greystone & Co., and Capital One respectively. Within the portfolio, the bulk, or 66 percent of the 3,941,306 square feet of built space are elevator properties, with walkup properties next occupying 20 percent of the space. The bulk, or 58 percent of the built space, is in Bronx, with Manhattan next at 23 percent of the space.

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