Elysee Investment pays $32M to KLM Equities for nine walkups with 213 units in Harlem

Avi Dishi’s Elysee Investment through the entity Central Harlem Portfolio LLC paid $32 million to KLM Equities through the entity Lassrick Associates L.P. for nine properties with 213 units including the 89-unit residential walkup building (C4) at 2470 8th Avenue in Harlem, Manhattan, 22-unit residential walkup building (C7) at 271 West 144th Street in Harlem, Manhattan, and 18-unit residential walkup building (C7) at 1941 Adam C Powell Boulevard in Harlem, Manhattan.
The deal closed on July 28, 2022 and was recorded on August 10, 2022. The nine properties have 201,764 square feet of built space and 8,341 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $158 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 KLM Equities was Elias Kefalidis. The signatory for Elysee Investment Corp was Uri Kirschner.

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 2470 8th Avenue.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Elysee Investment Corp purchased 14 properties in 14 transactions for a total of $148.7 million and has no record it sold any properties over the past 24 months.
The seller KLM Equities 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 Grant Ruthizer, head officer and Laurie Kefalidis, head officer. The business entities are Ibec Building Corp and Lassrick Associates L.P. The nine properties with a total of 201,764 square feet of built space generated revenue of $3.5 million per year or $17 per square foot. The sale price per square foot was $159.

The property

The 2470 8th Avenue parcel has frontage of 199 feet and is 100 feet deep with a total lot size of 19,983 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property has a J-51 exemption that started in 1995 and expires in 2029. 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 properties since September of 2020. In addition, according to city public data, the properties have received four housing violations and $950 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 the tax block of 2470 8th Avenue, PincusCo has identified the owners of 11 of the 16 commercial properties representing 158,289 square feet of the 451,613 square feet. The largest owner is Black Spruce Management, followed by ELH Mgmt. and then Chaskel Babad.
There are no active new building construction projects on this tax block.

the majority, or 48 percent of the 451,613 square feet of built space are walkup buildings, with elevator buildings next occupying 48 percent of the space.

The seller

The PincusCo database currently indicates that KLM Equities owned at least 16 commercial properties in New York City with 496,636 square feet and a city-determined market value of $131.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 53 percent of the 496,636 square feet of built space are elevator properties, with office properties next occupying 24 percent of the space. The bulk, or 79 percent of the built space, is in Manhattan, with Brooklyn next at 21 percent of the space.

The buyer

The PincusCo database currently indicates that Elysee Investment Corp owned at least 18 commercial properties in New York City with 581,538 square feet and a city-determined market value of $70.6 million. (Market value is typically about 50% of actual value.) The portfolio has $155.1 million in debt, borrowed from Morgan Stanley and Bank of America. Within the portfolio, the bulk, or 73 percent of the 581,538 square feet of built space are elevator properties, with walkup properties next occupying 23 percent of the space. They are all located in Manhattan.

Direct link to Acris document. link