Douglaston pays $124.5M to 97-year-old entity for 72-unit dev site in Carnegie Hill

Douglaston Development paid $124.5 million to the 97-year-old company Valeray Real Estate for two buildings in Carnegie Hill, including 175 East 82nd Street, that will be the site of a 72-unit high rise tower. The purchase was in two transactions.

In the first, Douglaston Development through the entity East 82 Owner LLC paid $114.5 million to Valeray Real Estate through the entity 170 East 83rd Street LLC for the property at 175 East 82nd Street in Carnegie Hill, Manhattan.
The deal closed on June 5, 2024 and was recorded on June 7, 2024.

In the second, Douglaston Development through the entity 170 East 83rd Street Owner LLC paid $10 million to Valeray Real Estate through the entity 170 East 83rd Street LLC for the 89-unit residential elevator building (D6) at 170 East 83rd Street in Carnegie Hill, Manhattan. The deal closed on June 5, 2024 and was recorded on June 7, 2024.

The signatory for Valeray Real Estate was Marjorie E. Nesbitt. Valeray Real Estate was formed in November 1927. The signatory for Douglaston Development was Steven Charno. The contract date was October 19, 2022. PincusCo reported on the development plans Douglaston Development filed in February 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Douglaston Development had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Valeray Real Estate had not purchased any other properties and had not sold any properties over the same time period.

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 not received any significant violations in the last year.

Development

On the lot, there is one active new building construction project for a 72-unit, 245,337 square-foot R-2 building. The project was submitted by Douglaston Development and filed by Steven Charno with plans filed February 26, 2024 and it has not been permitted yet.

The block

On this tax block, PincusCo has identified the owners of six of the 14 commercial properties representing 239,050 square feet of the 331,112 square feet. The largest owner is Trans World Equities, followed by Sma Equities and then Marjorie E. Nesbitt.
On the tax block, there were two new building construction projects totaling 253,518 square feet. The largest is a 72-unit, 245,337 square-foot residential (R-2) building submitted by Douglaston Development and filed by Steven Charno with plans filed February 26, 2024 and it has not been permitted yet. The second largest is a one-unit, 8,181 square-foot residential (R-3) building submitted by Adam Sanders with plans filed July 15, 2016 and it has not been permitted yet.

The majority, or 68 percent of the 331,112 square feet of built space are elevator buildings, with walkup buildings next occupying 22 percent of the space.

The buyer

The PincusCo database currently indicates that Douglaston Development owned at least eight commercial properties with 2,188 residential units in New York City with 2,200,427 square feet and a city-determined market value of $588.8 million. (Market value is typically about 50% of actual value.) The portfolio has $188.8 million in debt, with top three lenders as NYC Housing Development Corporation, NYS Housing Finance Agency, and Metropolitan Commercial Bank respectively. Within the portfolio, the bulk, or 99 percent of the 2,200,427 square feet of built space are elevator properties, with retail properties next occupying 1 percent of the space. The bulk, or 51 percent of the built space, is in Brooklyn, with Manhattan next at 43 percent of the space.

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