GO-RE Partners pays $28.2M to Greystone for 77-unit rental in East Harlem

GO-RE Partners through the entity 69e125 Equities LLC paid $28.2 million to Greystone Development through the entity 69 East 125 Street Owner LLC for the 77-unit residential elevator building (D6) at 69 East 125th Street in East Harlem, Manhattan.
The deal closed on October 16, 2023 and was recorded on October 19, 2023. The property has 63,445 square feet of built space and 1,510 square feet of additional air rights for a total buildable of 64,949 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $444 and the price per buildable square foot is $434 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 December 3, 2014, for $6.3 million. The signatory for Greystone Development was Andrew Frohlich. The signatory for GO-RE Partners was Doron Greenberg. The contract date was July 11, 2023. The buyer was GO-RE Partners, led by Doron Greenberg and Aviad Ohayon. The seller was Greystone Development, an affiliate of lender Greystone & Co. The brokers were Victor Sozio, Shimon Shkury, Mark Anderson, Gabriel Elyaszadeh, and Michael A. Tortorici of Ariel Property Advisors.

To finance the purchase, GO-RE Partners signed an acquisition loan with lender JPMorgan Chase valued at $17 million. For the financing, the signatory for GO-RE Partners was Robert Ezrapour. Robert Ezrapour is an executive with the development firm Artimus, but according to GO-RE Partners, Artimus is not involved in ownership.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer GO-RE Partners had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Greystone Development had not purchased any other properties and sold one property in one transaction for a total of $9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Jeffrey Cohen, head officer and Stephanie Knight, agent. The business entities are Choice New York Management and 69 East 125 Street Owner.

The property

The residential elevator building with 75 residential units in East Harlem has 63,445 square feet of built space and 1,510 square feet of additional air rights for a total buildable of 64,949 square feet according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 199 feet deep with a total lot size of 10,789 square feet. The zoning is C4-4D which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2019 and expires in 2044. The city-designated market value for the property in 2022 is $15.3 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 one DOB violation and $2,930 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 30, 2017. 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 13 of the 29 commercial properties representing 61,545 square feet of the 312,345 square feet. The largest owner is Yehuda Cohen, followed by Tomas Gutierrez and then Son Dinh Tran.
On the tax block, there were two new building construction projects totaling 215,432 square feet. The largest is a 222-unit, 203,519 square-foot residential (R-2) building submitted by L+M Development Partners and filed by Lisa Gomez with plans filed June 22, 2021 and permitted April 26, 2022. The second largest is a 21-unit, 11,913 square-foot residential (R-2) building submitted by Wendy Hewlett with plans filed April 13, 2016 and permitted September 13, 2021.

The majority, or 30 percent of the 312,345 square feet of built space are specialty buildings, with walkup buildings next occupying 27 percent of the space.

Direct link to Acris document. link