Gatsby Enterprises signs $15M refi for residential elevator in Alphabet City

Fred Ohebshalom’s Gatsby Enterprises through the entity Rea Realty 1 LLC as borrower signed a refi loan with lender Amalgamated Bank valued at $15 million for the 48-unit residential elevator building (D7) at 176 East Third Street in Alphabet City, Manhattan.
The deal closed on February 26, 2025 and was recorded on March 10, 2025. The prior lender was Capital One which held debt that had an original loan amount of $18 million.The property has 43,520 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $344 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 owner bought the property on November 18, 2014, for $31.5 million. The signatory for Gatsby Enterprises was Nader Ohebshalom . The signatory for Amalgamated Bank was Jacob Nimmer.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Nader Ohebshalom, head officer and Lisa Shalom, officer. The business entities are Rae Realty and Rae Realty. The 43,520-square-foot property generated revenue of $1.9 million or $43 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 48 residential units in Alphabet City has 43,520 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 99 feet and is 105 feet deep with a total lot size of 10,513 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The property has a J-51 exemption that started in 2007 and expires in 2041. The city-designated market value for the property in 2022 is $9.1 million. The most recent loan totaled $18 million and was provided by Capital One on October 25, 2019. The property has 48 rent regulated units according to city tax records from 2023.

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 seven housing violations and $550 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 12 of the 21 commercial properties representing 238,300 square feet of the 362,982 square feet. The largest owner is Benchmark Real Estate Group, followed by Penn South Capital and then Gatsby Enterprises.
There are no active new building construction projects on this tax block.

The majority, or 43 percent of the 362,982 square feet of built space are walkup buildings, with elevator buildings next occupying 42 percent of the space.

The borrower

The PincusCo database currently indicates that Gatsby Enterprises owned at least 34 commercial properties with 1,025 residential units in New York City with 709,475 square feet and a city-determined market value of $222.5 million. (Market value is typically about 50% of actual value.) The portfolio has $232.2 million in debt, with top three lenders as Capital One, Dime Community Bank, and Citibank respectively. Within the portfolio, the bulk, or 46 percent of the 709,475 square feet of built space are elevator properties, with walkup properties next occupying 45 percent of the space. They are all located in Manhattan.

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