GAIA Real Estate pays $14M to Granite International for 28-unit walkup in Lower East Side

GAIA Real Estate Holdings through the entity 106 Norfolk Owner LLC paid $14 million to Granite International Management through the entity Norfolk Development LLC for 28-unit residential walkup building (C7) at 106 Norfolk Street in Lower East Side, Manhattan.
The deal closed on August 2, 2022 and was recorded on August 24, 2022. The property has 15,429 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $907 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 Granite International Management was Alistair Economakis. The signatory for GAIA Real Estate Holdings was David Kusy.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer GAIA Real Estate Holdings purchased three properties in three transactions for a total of $34.8 million and has no record it sold any properties over the past 24 months.
The seller Granite International Management had not purchased any other properties and sold two property in one transaction for a total of $16.5 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Catherine Economakis, head officer and Luis Garcia, site manager. The business entities are Canvas Property Group and Norfolk Development Llc. The 15,429-square-foot property generated revenue of $880,843 or $57 per square foot, according to the most recent income and expense figures.

The property

The 106 Norfolk Street parcel has frontage of 37 feet and is 100 feet deep with a total lot size of 3,772 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 $4.6 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 not received any significant violations 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 this tax block, PincusCo has identified the owners of 11 of the 25 commercial properties representing 162,770 square feet of the 406,572 square feet. The largest owner is Asian Americans for Equality, followed by Carter Management and then Hubb Nyc.
There are no active new building construction projects on this tax block.

The majority, or 30 percent of the 401,273 square feet of built space are walkup buildings, with specialty buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Granite International Management owned at least three commercial properties in New York City with 55,545 square feet and a city-determined market value of $13.4 million. (Market value is typically about 50% of actual value.) The portfolio has $15.5 million in debt, borrowed from JPMorgan Chase. Within the portfolio, all identified are walkup properties. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Gaia Real Estate Holdings owned at least three commercial properties in New York City with 32,378 square feet and a city-determined market value of $13.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Manhattan.

Direct link to Acris document. link