Florida-based My Sunny Laundry pays $3.4M for mixed-use in Alphabet City

The Florida-based commercial laundry My Sunny Laundry through the entity H & L Laundromat Holdings, LLC paid $3.4 million to Gwang Il Kim through the entity D & K Plaza Inc for the three-unit mixed-use building (K4) at 650 East 5th Street in Alphabet City, Manhattan.
The deal closed on July 13, 2023 and was recorded on July 25, 2023. The property has 3,840 square feet of built space and 4,795 square feet of additional air rights for a total buildable of 8,640 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $885 and the price per buildable square foot is $393 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 Gwang Il Kim was Gwang Il Kim. The signatory for My Sunny Laundry was Laurent Broda.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer My Sunny Laundry had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Gwang Il Kim had not purchased any other properties and had not sold any properties over the same time period. The 3,840-square-foot property generated revenue of $206,199 or $54 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 3 residential units in Alphabet City has 3,840 square feet of built space and 4,795 square feet of additional air rights for a total buildable of 8,640 square feet according to a PincusCo analysis of city data. The parcel has frontage of 24 feet and is 90 feet deep with a total lot size of 2,160 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.2 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 $25 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 neighborhood

In Alphabet City, The majority, or 56 percent of the 13 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 32 percent of the space. In sales, Alphabet City has had very little sales volume relative to other neighborhoods with $295.2 million in sales volume in the last two years. For development, Alphabet City has had very little major development activity relative to other neighborhoods.It had 120,306 square feet of commercial and multi-family construction under development in the last two years, which represents 0.93 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 18 commercial properties representing 102,803 square feet of the 362,743 square feet. The largest owner is Steven Albert, followed by New York City Housing Authority and then L+M Development Partners.
On the tax block, there was one new building construction project filed totaling 7,073 square feet. It is a five-unit, 7,073 square-foot residential (R-2) building submitted by Terry Martinolle with plans filed January 19, 2016 and permitted March 4, 2019.

The majority, or 44 percent of the 362,743 square feet of built space are walkup buildings, with specialty buildings next occupying 39 percent of the space.

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