Denali Management acquires 49-unit Harlem rental from Thor Equities valued at $21.2M

Denali Management through the entity 125 Improvement Group LLC acquired from Thor Equities through the entity Thor 17 West 125th Street LLC the 49-unit residential elevator building (D7) at 17 West 125th Street in Harlem, Manhattan, at a valuation of $21.2 million.
The deal closed on July 12, 2022 and was recorded on July 29, 2022. The property has 46,200 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $459 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 August 19, 2015, for $29.6 million. The signatory for Thor Equities was Morris Missry. The signatory for Denali Management was Ben Rieder. Ben Rieder is identified in LinkedIn as COO of Chestnut Holdings, but the buyer entity is is care of Denali Management at the Denali address. Denali Management bought the $23 million note secured by the building, PincusCo reported at the time. In April 2021, East West Bank, the original lender from 2015, filed to foreclose on the loan, PincusCo reported at the time.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Denali Management purchased 42 properties in 34 transactions for a total of $211.7 million and has no record it sold any properties over the past 24 months.
The seller Thor Equities purchased one properties in one transactions for a total of $78 million and sold 10 properties in eight transactions for a total of $287.3 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Melissa Gliatta, head officer and Rachel Shier, agent. The business entities are Avison Young – New York, Llc and Thor 17 West 125th Street Llc.

The property

The 17 West 125th Street parcel has frontage of 115 feet and is 99 feet deep with a total lot size of 11,491 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 $7.6 million.The most recent loan totaled 0.0 and was provided by Denali Management|Chestnut Commercial on July 8, 2022.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $23 million commercial foreclosure concerning a loan filed on April 9, 2021, by East West Bank against Thor Equities. In addition, according to city public data, the property has received one DOB violation, 10 housing violations, and $1,300 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 six of the 31 commercial properties representing 212,289 square feet of the 643,603 square feet. The largest owner is Alex Adjmi, followed by Thor Equities and then Irgang Group. There is one active new building construction project totaling 143,560 square feet. It is a 162-unit, 143,560-square-foot R-2 building developed by Mark Irgang with plans filed March 21, 2022 and it has not been permitted yet.

The majority, or 46 percent of the 643,603 square feet of built space are office buildings, with retail buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that Thor Equities owned at least 49 commercial properties in New York City with 925,151 square feet and a city-determined market value of $252.9 million. (Market value is typically about 50% of actual value.) The portfolio has $192.2 million in debt, with top three lenders as MetLife, Athene Holding, and JPMorgan Chase respectively. Within the portfolio, the bulk, or 40 percent of the 925,151 square feet of built space are elevator properties, with office properties next occupying 32 percent of the space. The bulk, or 72 percent of the built space, is in Manhattan, with Brooklyn next at 28 percent of the space.

The buyer

The PincusCo database currently indicates that Denali Management owned at least 45 commercial properties in New York City with 1,083,858 square feet and a city-determined market value of $76.1 million. (Market value is typically about 50% of actual value.) The portfolio has $87.5 million in debt, with top three lenders as JPMorgan Chase, Investors Bank, and New York Community Bank respectively. Within the portfolio, the bulk, or 70 percent of the 1,083,858 square feet of built space are walkup properties, with elevator properties next occupying 30 percent of the space. The bulk, or 72 percent of the built space, is in Bronx, with Brooklyn next at 17 percent of the space.

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