Edward Ostad pays $21.9M for four walkups in Manhattan

Edward Ostad paid $21.9 million to entities affiliated with Danielle Downing that owned four walkup buildings in Manhattans. The properties were sold in four separate transaction and are 746 Ninth Avenue in Hell’s Kitchen, 1732 Second Avenue in Yorkville, 723 11th Avenue in Hell’s Kitchen and 714 Greenwich Street in the West Village.

The buyer financed the purchases with a $14.5 million loan which Amalgamated Bank provided.

The seller, Danielle Downing, is the daughter of the late real estate investor Vincent Downing. Vincent was the owner of Vincent Downing Real Estate. In 2016, the then 85-year old Vincent Downing died after being being struck by an automobile.

In the first, Edward Ostad through the entity 746 9th LLC paid $7.2 million to Danielle Downing through the entity 746 Ninth Avenue LLC for the 16-unit residential walkup building (C7) at 746 Ninth Avenue in Hell’s Kitchen, Manhattan.
The deal closed on March 28, 2024 and was recorded on March 29, 2024. The property has 9,725 square feet of built space and 5,322 square feet of additional air rights for a total buildable of 15,043 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $740 and the price per buildable square foot is $478 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 Danielle Downing was Danielle Downing. The signatory for Edward Ostad was Edward Ostad. The contract date was November 9, 2023.

In the second, Edward Ostad through the entity 301 East 90th LLC paid $5.2 million to Danielle Downing through the entity 301 East 90th Street LLC for the 12-unit residential walkup building (C7) at 1732 2nd Avenue in Yorkville, Manhattan. The deal closed on March 28, 2024 and was recorded on March 29, 2024. The property has 8,904 square feet of built space and 10,372 square feet of additional air rights for a total buildable of 19,280 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $587 and the price per buildable square foot is $271 per the PincusCo analysis.

In the third, Edward Ostad through the entity 723 11th LLC paid $5 million to Danielle Downing through the entity 723 Eleventh Ave LLC for the 11-unit residential walkup building (C7) at 723 11th Avenue in Hell’s Kitchen, Manhattan. The deal closed on March 28, 2024 and was recorded on March 29, 2024. The property has 10,035 square feet of built space and 2,508 square feet of additional air rights for a total buildable of 12,540 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $500 and the price per buildable square foot is $400 per the PincusCo analysis.

In the fourth, Edward Ostad through the entity 714 Greenwich LLC paid $4.4 million to Danielle Downing through the entity 714 Greenwich Street LLC for the 10-unit residential walkup building (C1) at 714 Greenwich Street in West Village, Manhattan. The deal closed on March 28, 2024 and was recorded on March 29, 2024. The property has 6,155 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $722 per the PincusCo analysis

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Edward Ostad purchased four properties in three transactions for a total of $16.2 million and has no record it sold any properties over the past 24 months.
The seller Danielle Downing 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 includes Jorge Jorge, head officer and Daniel Papa, officer. The business entities are Lisa Management and 746 Ninth Avenue Llc.

The property

The residential walkup building with 16 residential units in Hell’s Kitchen has 9,725 square feet of built space and 5,322 square feet of additional air rights for a total buildable of 15,043 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4 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 $1,480 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 12 of the 25 commercial properties representing 791,986 square feet of the 921,302 square feet. The largest owner is Triumph Real Estate Management, followed by Standard Companies and then Relo Redac Inc..
There are no active new building construction projects on this tax block.

The majority, or 74 percent of the 921,302 square feet of built space are elevator buildings, with walkup buildings next occupying 18 percent of the space.

The buyer

The PincusCo database currently indicates that Edward Ostad owned at least 27 commercial properties with 626 residential units in New York City with 598,981 square feet and a city-determined market value of $99.4 million. (Market value is typically about 50% of actual value.) The portfolio has $190.1 million in debt, with top three lenders as Signature Bank, New York Community Bank, and Greystone & Co. respectively. Within the portfolio, the bulk, or 48 percent of the 598,981 square feet of built space are elevator properties, with walkup properties next occupying 46 percent of the space. The bulk, or 64 percent of the built space, is in Manhattan, with Bronx next at 20 percent of the space.

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