East Group Capital pays $9.1M for 13-unit walkup in Flatiron District

East Group Capital through the entity 2 West 16th Owner LLC paid $9.1 million to Vista Real Estate, Inc. for the 13-unit residential walkup building (C5) at 2 West 16th Street in Flatiron District, Manhattan. The expected use is cash flowing.
The deal closed on August 8, 2024 and was recorded on August 21, 2024. The property has 12,750 square feet of built space and 10,725 square feet of additional air rights for a total buildable of 23,478 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $713 and the price per buildable square foot is $387 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 Vista Real Estate was Eden Miller. The signatory for East Group Capital was Itay Gamlieli. The contract date was March 18, 2024.

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 $12.1 million and sold two properties in two transactions for a total of $4.9 million over the past 24 months.
The seller Eden Miller had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development include Eden Miller, head officer and Michael Brody, site manager. The business entity is Vista Real Estate.

The property

The residential walkup building with 13 residential units in Flatiron District has 12,750 square feet of built space and 10,725 square feet of additional air rights for a total buildable of 23,478 square feet according to a PincusCo analysis of city data. The parcel has frontage of 35 feet and is 87 feet deep with a total lot size of 3,900 square feet. The lot is irregular. The property is in the Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $3.5 million.

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 $3,125 in ECB penalties and $4,265 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 two of the five commercial properties representing 109,149 square feet of the 187,168 square feet. The two identified owners are Zucker Organization and Jack Di Mauro.
There are no active new building construction projects on this tax block.

The majority, or 54 percent of the 187,168 square feet of built space are elevator buildings, with specialty buildings next occupying 32 percent of the space.

The buyer

The PincusCo database currently indicates that East Group Capital owned at least six commercial properties with 69 residential units in New York City with 46,763 square feet and a city-determined market value of $13.7 million. (Market value is typically about 50% of actual value.) The portfolio has $27.5 million in debt, with top three lenders as Bayport Funding, Bayport, and Axos Bank respectively. Within the portfolio, the bulk, or 83 percent of the 46,763 square feet of built space are walkup properties, with mixed-use properties next occupying 17 percent of the space. The bulk, or 71 percent of the built space, is in Manhattan, with Brooklyn next at 29 percent of the space.

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