Frank Morano pays $8.9M for residential walkup in Nolita

Frank Morano through the entity 27 Prince Holdings LLC paid $8.9 million to David Zahabian through the entity 27 Prince Street LLC for the 14-unit residential walkup building (C7) at 27 Prince Street in Nolita, Manhattan.
The deal closed on March 29, 2023 and was recorded on April 5, 2023. The property has 8,615 square feet of built space and 5,398 square feet of additional air rights for a total buildable of 14,008 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,033 and the price per buildable square foot is $635 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 November 4, 2011, for $5.9 million. The signatory for David Zahabian was David Zahabian. The signatory for Frank Morano was Frank Morano.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Frank Morano had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller David Zahabian 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 David Zahabian, head officer and Cheryl Sorrentino, shareholder. The business entity is 27 Prince Street Llc. The 8,615-square-foot property generated revenue of $579,876 or $67 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 14 residential units in Nolita has 8,615 square feet of built space and 5,398 square feet of additional air rights for a total buildable of 14,008 square feet according to a PincusCo analysis of city data. The parcel has frontage of 27 feet and is 89 feet deep with a total lot size of 2,327 square feet. The lot is irregular. The zoning is C6-2 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential. The city-designated market value for the property in 2022 is $3.6 million. The most recent loan totaled $5.8 million and was provided by SnowPoint Capital Management on July 23, 2021.

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 $625 in ECB penalties, one housing violation, and $625 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 10 of the 25 commercial properties representing 204,874 square feet of the 321,209 square feet. The largest owner is Zahabian Realty, followed by William Gottlieb Real Estate and then Mark D. Kalimian.
There are no active new building construction projects on this tax block.

The majority, or 61 percent of the 321,209 square feet of built space are walkup buildings, with elevator buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that David Zahabian owned at least two commercial properties in New York City with 25,930 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $6.7 million in debt, borrowed from BCB Community Bank. Within the portfolio, the bulk, or 53 percent of the 25,930 square feet of built space are mixed-use properties, with office properties next occupying 47 percent of the space. They are all located in Manhattan.

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