Eran Nornberg pays $14.3M to Delshah Capital for 32-unit elevator rental in Harlem

Eran Nornberg through the entity Ostb 321 Lenox Avenue, LLC paid $14.3 million to Delshah Capital through the entity Delshah 321 Lenox LLC for 32-unit residential elevator building at 321 Lenox Avenue in Harlem, Manhattan.
The deal closed on April 29, 2022 and was recorded on May 10, 2022. The property has 23,746 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $603 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 30, 2013, for $1.8 million. The signatory for Delshah Capital was Michael K. Shah. The signatory for Eran Nornberg was Lisa Breier Urban. Eran Nornberg signed on the acquisition loan for the property.

Prior sales and revenue

The seller Delshah Capital purchased five properties in two transactions for a total of $32.8 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 Michael Shah, head officer and Franz Palacio, site manager. The business entities are Delshah 321 Lenox Llc and Delshah 321 Lenox Llc. The 23,746-square-foot property generated revenue of $1.2 million or $50 per square foot, according to the most recent income and expense figures.

The property

The 321 Lenox Avenue parcel has frontage of 45 feet and is 103 feet deep with a total lot size of 4,678 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $1,250 in ECB penalties and $3,830 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 17, 2016. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Harlem, the bulk, or 42 percent of the 99.7 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 24 percent of the space. In sales, Harlem has 2.2 times the average sales volume among other neighborhoods with $607.8 million in sales volume in the last two years and is the 20th highest in Manhattan. For development, Harlem has 2.8 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Manhattan. It had 2.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 22 commercial properties representing 98,074 square feet of the 201,630 square feet. The largest owner is Lemle & Wolfe, followed by Noorollah Asherian and then Brusco Group. There are four active new building construction projects totaling 18,366 square feet. The largest is a six-unit, 6,104-square-foot R-2 building developed by Sergio Kielmanowicz with plans filed May 7, 2013 and it has not been permitted yet.The second largest is a seven-unit, 4,189-square-foot R-2 building developed by Rona Reodica with plans filed May 7, 2020 and it has not been permitted yet.

The majority, or 28 percent of the 394,233 square feet of built space are residential elevator buildings, with specialty buildings next occupying 25 percent of the space.

The seller

The PincusCo database, which is incomplete, currently indicates that Delshah Capital owned at least 13 commercial properties with 368,234 square feet and a city-determined market value of $51.4 million. (Market value is typically about 50% of actual value.) The portfolio has $250.7 million in debt, with top three lenders as Arbor Realty Trust, Signature Bank, and Amherst Capital Management respectively. Within the portfolio, the bulk, or 72 percent of the 368,234 square feet of built space are D3 properties, with residential walkup properties next occupying 21 percent of the space. The bulk, or 82 percent of the built space, is in Manhattan, with Brooklyn next at 18 percent of the space.

The buyer

The PincusCo database currently indicates that Eran Nornberg owned at least one commercial property with 10,503 square feet and a city-determined market value of $1.4 million. (Market value is typically about 50% of actual value.) The portfolio has $6.2 million in debt, borrowed from Bank of Princeton. The portfolio consists of at least a single residential elevator property. It is located in Brooklyn.

Surrounding

Within a 400-foot radius of 321 Lenox Avenue, PincusCo identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, one was in new building development. It was a new building permit issued on April 2, 2021 for a 357,425-square-foot R-2 building with 171 residential units at 126 West 126th Street.
Of those two items, one was for major renovation including a certificate of occupancy change. It was a permit issued on November 26, 2021 for the $834,000 renovation of 5,635-square-foot R-2 building with eight residential units at 135 West 126th Street.

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