Elad Group pays $61M to Premier Equities for 3 parcels of dev site in Lenox Hill

Elad Group paid $61 million to Premier Equities for three-property development site composed of the nine-unit residential walkup building at 204 East 75th Street, the vacant lot at 1297 3rd Avenue and the vacant lot at 1299 3rd Avenue in Lenox Hill, Manhattan.

Jane Gol was the signatory for Premier Equities, through the entity Premier Third Avenue De LLC. Orly Daniell signed for Elad Group through the entity El Ad East 74 LLC.

The purchase was financed with a $40.9 million acquisition loan from Valley National Bank.

The deal closed on April 29, 2022 and was recorded on May 16, 2022. Elad also obtained a construction license allowing it to do work impacting a neighboring building.

The three properties have 4,320 square feet of built space and 47,680 square feet of additional air rights for a total buildable of 52,000 square feet according to PincusCo analysis of city data.

The sale price per built square foot is $14,120 and the price per buildable square foot is $1,173 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.)

Premier Equities and Elad Group have not yet responded to PincusCo requests for comment.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 204 East 75th Street.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Yaron Jacobi, head officer and Joseph Sitt, officer. The business entity is 204 East 75th Tp Llc.

The property

The 204 East 75th Street parcel has frontage of 19 feet and is 102 feet deep with a total lot size of 2,000 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 $2.5 million.The most recent loan totaled $33 million and was provided by Emerald Creek Capital on June 26, 2019.
The 1297 3rd Avenue parcel has frontage of 20 feet and is 110 feet deep with a total lot size of 2,200 square feet. The zoning is C1-9 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.8 million.The most recent loan totaled $33 million and was provided by Emerald Creek Capital on June 26, 2019.
The 1299 3rd Avenue parcel has frontage of 20 feet and is 110 feet deep with a total lot size of 2,200 square feet. The zoning is C1-9 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.8 million.The most recent loan totaled $33 million and was provided by Emerald Creek Capital on June 26, 2019.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $450 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 47-unit, 111,870-square-foot R-2 building. The project was developed by Sara Rubenstein with plans filed March 7, 2018 and it has not been permitted yet. Yimby reported in January 2017 on a plan by Premier Equities and Thor Equities to develop the parcels.

The neighborhood

In Lenox Hill, the majority, or 56 percent of the 91.2 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Lenox Hill has the 3rd highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Lenox Hill has had very little major development activity relative to other neighborhoods.It had 436,108 square feet of commercial and multi-family construction under development in the last two years, which represents 0.48 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On the tax block of 204 East 75th Street, PincusCo has identified the owners of 18 of the 33 commercial properties representing 163,512 square feet of the 288,817 square feet. The largest owner is Related Companies, followed by EJS Group and then Premier Equities. There are two active new building construction projects totaling 235,365 square feet. The largest is a 47-unit, 111,870-square-foot R-2 building developed by Sara Rubenstein with plans filed March 7, 2018 and it has not been permitted yet. The second largest is a 38-unit, 123,495-square-foot R-2 building developed by Bill Shaughnessy with plans filed May 9, 2022 and it has not been permitted yet.

The majority, or 69 percent of the 473,021 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 26 percent of the space.

Surrounding

Within a 400-foot radius of 204 East 75th Street, Pincusco identified 17 commercial real estate items of interests occurred over the past 24 months.
Of those 17 items, one was in new building development. It was a new building permit application filed on May 9, 2022 for a 97,569-square-foot R-2 building with 38 residential units at 1307 3rd Avenue.
Of those 17 items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on February 28, 2022 for the $646,020 renovation of 5,341-square-foot R-2 building with four residential units at 206 East 75th Street.
Of those 17 items, five were sales above $5 million totaling $42.6 million. The most recent of the five was David James which bought the 5,315-square-foot, five-unit rental (C2) on 206 East 75th Street for $5.2 million from TLC Management on October 29, 2021.
Of those 17 items, 10 were loans above $5 million totaling $78.4 million. The most recent of the 10 was Chaim Simkowitz which borrowed $5.5 million from Signature Bank secured by the 9,150-square-foot, 15-unit rental (C4) on 218 East 74th Street on April 5, 2022.

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