German investor Tatar Holding pays $30M to Magnum for 3 LES walkups

The German investment firm Tatar Holding through the entity Tatar Ludlow LLC paid $30 million to Magnum Real Estate Group through the entity 165 Ludlow Owner LLC for three adjacent walkup properties 163, 165 and 167 Ludlow Street in Lower East Side, Manhattan. The properties have a total of 66 residential units, according to a listing.
The deal closed on April 26, 2023 and was recorded on May 4, 2023. The three properties have 25,250 square feet of built space and 765 square feet of additional air rights according to a PincusCo analysis of city data. The sale price per built square foot is $1,188 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.)

According to the listing from Cushman & Wakefield, “The residential units are 97% occupied, 89% free market, and are broken down into 60 1-bedroom units and 6 3-bedroom units along the ground floor.” The asking price was $33.95 million.

Magnum Real Estate Group bought the properties in 2012 for $16.5 million.
The signatory for Magnum Real Estate Group was Benjamin Shaoul. The signatory for Tatar Holding was Elad Dror of PD Properties. Tatar Holding is a German real estate investment firm. This is its first purchase in New York City and it plans more, in all asset classes, said Elad Dror of PD Properties, who advises the firm and was the buy-side broker. A Cushman & Wakefield team of Eric Roth Maurice Suede, Michael DeCheser and Bryan Hurley represented Magnum.

Tatar Holding assumed a $23.5 million loan at the same time.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 163 Ludlow Street.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Tatar Holding had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Magnum Real Estate Group purchased one property in one transactions for a total of $6 million and sold two properties in two transactions for a total of $14.1 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Josh Evans, head officer and Sonny Bharat, agent. The business entities are Magnum Management and 163 Ludlow Owner, Llc. The three properties with a total of 25,250 square feet of built space generated revenue of $1.8 million per year or $70 per square foot. The sale price per square foot was $1,188.

The property

The residential walkup building with 19 residential units in Lower East Side has 25,250 square feet of built space and 765 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 87 feet deep with a total lot size of 1,874 square feet. The lot is irregular. The zoning is C4-4A which allows for up to 4 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.6 million. The most recent loan totaled $23.5 million and was provided by Bank of Montreal on July 26, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received two housing violations and $700 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 the tax block of 163 Ludlow Street, PincusCo has identified the owners of 13 of the 34 commercial properties representing 390,770 square feet of the 554,815 square feet. The largest owner is Movcap, followed by Michelle Goldstein and then Magnum Real Estate Group.
On the tax block, there were two new building construction projects totaling 243,605 square feet. The largest is a 89-unit, 130,359 square-foot residential (R-2) building submitted by Hesky Haim with plans filed January 4, 2013 and permitted January 12, 2017. The second largest is a 83-unit, 113,246 square-foot residential (R-2) building submitted by Marc Ravner with plans filed November 14, 2014 and it has not been permitted yet.

The majority, or 40 percent of the 554,815 square feet of built space are elevator buildings, with walkup buildings next occupying 37 percent of the space.

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