Edward Shllaku pays $8M to KSR for once bankrupt 62-unit rental in Rego Park

Edward Shllaku through the entity 99-44 62nd Realty LLC paid $8 million to Kassin Sabbagh Realty through the entity 99-44 62 LLC for the 62-unit residential elevator building (D1) at 99-44 62nd Avenue in Rego Park, Queens. The expected use is cash flowing.
KSR acquired the building in April from the Golyan family’s Golyan Enterprises through a bankruptcy auction, as the lender using a $5 million credit bid and $802,000 in cash, according to the deed transfer.
The Shllaku deal closed on November 1, 2024 and was recorded on November 8, 2024. The property has 55,300 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $144 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 April 18, 2024, for $5.8 million. The signatory for Kassin Sabbagh Realty was Abraham J. Kassin. The signatory for Edward Shllaku was Edward Shllaku. The contract date was July 9, 2024.

The Golyan family bought the property on April 30, 2013, for $1.8 million.

Faraidoon Golyan through Golyan Enterprises placed this property on behalf of himself, his brother Joseph Golyan the estate for their late brother Bijan Golyan, into bankruptcy (1-23-41647-nhl) in May 2023 estimating the property to be worth $12 million. The Golyan family of Great Neck was locked in a bitter dispute over this and other properties.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Edward Shllaku had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Kassin Sabbagh Realty purchased seven properties in seven transactions for a total of $40.1 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Joseph Misk, individual owner and Alex Alvarado, site manager. The business entities are Joseph N Misk As Receiver and Joseph Misk As Receiver.

The property

The residential elevator building with 62 residential units in Rego Park has 55,300 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 160 feet and is 100 feet deep with a total lot size of 16,000 square feet. The lot is irregular. The zoning is R4 which allows for up to 0.75 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $7.2 million. The property has 62 rent regulated units according to city tax records from 2023.

Violations and lawsuits

The property was involved in one lawsuit and one bankruptcy over the past two years. The suit was a $6.5 million money judgment concerning a loan filed on June 7, 2024, by Kassin Sabbagh Realty against Bijan Golyan estate, Joseph Golyan, and Faraidoon Golyan. The bankruptcy was filed on May 11, 2023, by Faraidoon Golyan, Golyan Enterprises, Bijan Golyan, and Joseph Golyan citing assets of $12 million. In addition, according to city public data, the property has received two DOB violations, $26,250 in ECB penalties, 21 housing violations, and $32,900 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 one of the three commercial properties representing 55,300 square feet of the 61,749 square feet. The identified owner is Kassin Sabbagh Realty.
On the tax block, there were two new building construction projects totaling 10,016 square feet. The largest is a six-unit, 5,397 square-foot residential (R-2) building submitted by Grisha Leviyev with plans filed October 3, 2019 and permitted December 20, 2023. The second largest is a two-unit, 4,619 square-foot residential (R-3) building submitted by Rakhmin Malakov with plans filed February 25, 2013 and permitted July 28, 2014.

The majority, or 90 percent of the 61,749 square feet of built space are elevator buildings, with mixed-use buildings next occupying 10 percent of the space.

The seller

The PincusCo database currently indicates that Kassin Sabbagh Realty owned at least six commercial properties with 90 residential units in New York City with 91,749 square feet and a city-determined market value of $14.8 million. (Market value is typically about 50% of actual value.) The portfolio has $16.5 million in debt, borrowed from East West Bank and Signature Bank. Within the portfolio, the bulk, or 72 percent of the 91,749 square feet of built space are elevator properties, with retail properties next occupying 17 percent of the space. The bulk, or 60 percent of the built space, is in Queens, with Brooklyn next at 19 percent of the space.

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