Gorjian Real Estate pays $16.5M to long-time owners for 50-unit rental in Hell’s Kitchen

Gorjian Real Estate Group through the entity Gg West 57 Owner LLC paid $16.5 million to Robert L. Miller through the entity 425 Realty Co., LLC for the 50-unit residential elevator building (D1) at 425 West 57th Street in Hell’s Kitchen, Manhattan. The expected use is cash flowing.

Prior to this transaction, PincusCo has records that the buyer Gorjian Real Estate Group purchased two properties in two transactions for a total of $20.4 million and has no record it sold any properties over the past 24 months. One of the purchases is the $12.8 million acquisition with Joseph Sutton of 271 Broome Street in Little Italy in August.

The deal closed on September 9, 2024 and was recorded on September 16, 2024. The property has 39,210 square feet of built space and 21,289 square feet of additional air rights for a total buildable of 60,452 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $420 and the price per buildable square foot is $272 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 Robert L. Miller was Robert L. Miller. The signatory for Gorjian Real Estate Group was Cobby Gorjian. The contract date was April 22, 2024.

The property has been in the family of Bernard Miller and his wife Harriet Schutz Miller since at least the 1970s. The related real estate firm was Miller & Miller Real Estate Company.

Prior sales and revenue

The seller Robert L. Miller had not purchased any other properties and sold one properties 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 Robert Miller, head officer and Andres Pena, site manager. The business entities are B&R Management Co Llc and 425 Realty Co. Llc.

The property

The residential elevator building with 50 residential units in Hell’s Kitchen has 39,210 square feet of built space and 21,289 square feet of additional air rights for a total buildable of 60,452 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,042 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $6.7 million. The most recent loan totaled $6.6 million and was provided by JPMorgan Chase on June 23, 2021. The property has 12 rent regulated units according to city tax records from 2022.

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 $1,000 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 eight of the 13 commercial properties representing 322,639 square feet of the 596,224 square feet. The largest owner is Joseph Punia, followed by Kamran Hakim and then Robert Miller.
There are no active new building construction projects on this tax block.

The majority, or 53 percent of the 596,224 square feet of built space are elevator buildings, with specialty buildings next occupying 29 percent of the space.

The buyer

The PincusCo database currently indicates that Gorjian Real Estate Group owned at least 11 commercial properties with 140 residential units in New York City with 258,753 square feet and a city-determined market value of $84.7 million. (Market value is typically about 50% of actual value.) The portfolio has $12 million in debt, borrowed from Citibank. Within the portfolio, the bulk, or 48 percent of the 258,753 square feet of built space are office properties, with walkup properties next occupying 36 percent of the space. They are all located in Manhattan.

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