East Group Capital pays $7M to Michael Daniel for 25-unit walkup in Upper West Side

East Group Capital through the entity 25 Valley LLC paid $7 million to Michael Daniel through the entity 109th Street Building LLC for 25-unit residential walkup building (C4) at 215 West 109th Street in Upper West Side, Manhattan.
The deal closed on September 21, 2022 and was recorded on October 7, 2022. The property has 14,754 square feet of built space and 378 square feet of additional air rights for a total buildable of 15,136 square feet according to PincusCo analysis of city data. The sale price per built square foot is $474 and the price per buildable square foot is $462 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 Michael Daniel was Michael Daniel. The signatory for East Group Capital was Itay Gamlieli.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer East Group Capital purchased three properties in three transactions for a total of $8.1 million and has no record it sold any properties over the past 24 months.
The seller Michael Daniel had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Michael Daniel, head officer. The business entity is 109th Street Building Llc. The 14,754-square-foot property generated revenue of $585,044 or $40 per square foot, according to the most recent income and expense figures.

The property

The 215 W 109th St parcel has frontage of 37 feet and is 100 feet deep with a total lot size of 3,784 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.2 million.

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 37 housing violations and $9,680 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 16 of the 21 commercial properties representing 354,765 square feet of the 467,545 square feet. The largest owner is Columbia University, followed by Black Spruce Management and then Michael Daniel.
There are no active new building construction projects on this tax block.

The majority, or 39 percent of the 467,355 square feet of built space are walkup buildings, with specialty buildings next occupying 35 percent of the space.

The seller

The PincusCo database currently indicates that Michael Daniel owned at least eight commercial properties in New York City with 135,489 square feet and a city-determined market value of $23.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that East Group Capital owned at least four commercial properties in New York City with 26,509 square feet and a city-determined market value of $9.1 million. (Market value is typically about 50% of actual value.) The portfolio has $21.9 million in debt, borrowed from Bayport Funding and Bayport. Within the portfolio, the bulk, or 69 percent of the 26,509 square feet of built space are walkup properties, with mixed-use properties next occupying 31 percent of the space. The bulk, or 69 percent of the built space, is in Manhattan, with Brooklyn next at 31 percent of the space.

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