Grocer Ruben Luna pays $18.2M to Sierra Assets Group for retail in Washington Heights
Grocer Ruben Luna through the entity Diluna Property LLC paid $18.2 million to Sierra Assets Group through the entity M&H Zuckerbraun, LLC for the retail building (K1) at 1221 St. Nicholas Avenue in Washington Heights, Manhattan.
The deal closed on March 6, 2024 and was recorded on March 12, 2024. The property has 17,100 square feet of built space and 41,724 square feet of additional air rights for a total buildable of 58,824 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,064 and the price per buildable square foot is $309 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 Sierra Assets Group was Lionel Etra. The signatory for Ruben Luna was Ruben Luna. The contract date was June 5, 2023. Ruben Luna operates Key Food stores.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Ruben Luna purchased two properties in two transactions for a total of $16.8 million and has no record it sold any properties over the past 24 months.
The seller Sierra Assets Group had not purchased any other properties and sold three properties in one transactions for a total of $13.1 million over the same time period.
The property
The retail building in Washington Heights has 17,100 square feet of built space and 41,724 square feet of additional air rights for a total buildable of 58,824 square feet according to a PincusCo analysis of city data. The parcel has frontage of 190 feet and is 90 feet deep with a total lot size of 17,100 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $6.3 million. The most recent loan totaled $8 million and was provided by Signature Bank on January 16, 2020.
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 neighborhood
In Washington Heights, The bulk, or 45 percent of the 65.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 27 percent of the space. In sales, Washington Heights has 1.5 times the average sales volume among other neighborhoods with $448.6 million in sales volume in the last two years and is the 22nd highest in Manhattan. For development, Washington Heights has 1.2 times the average amount of major developments relative to other neighborhoods and is the 24th highest in Manhattan. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of six of the 10 commercial properties representing 201,226 square feet of the 261,662 square feet. The largest owner is Sky Management, followed by Sierra Assets Group and then Columbia University.
On the tax block, there was one new building construction project filed totaling 11,718 square feet. It is a 14-unit, 11,718 square-foot residential (R-2) building submitted by Nancy Lin with plans filed March 18, 2022 and it has not been permitted yet.
The majority, or 68 percent of the 261,662 square feet of built space are elevator buildings, with retail buildings next occupying 17 percent of the space.
The seller
The PincusCo database currently indicates that Sierra Assets Group owned at least two commercial properties with 47 residential units in New York City with 63,510 square feet and a city-determined market value of $16.9 million. (Market value is typically about 50% of actual value.) The portfolio has $25.4 million in debt, borrowed from Capital One and Signature Bank. Within the portfolio, the bulk, or 73 percent of the 63,510 square feet of built space are elevator properties, with retail properties next occupying 27 percent of the space. The bulk, or 73 percent of the built space, is in Brooklyn, with Manhattan next at 27 percent of the space.
The buyer
The PincusCo database currently indicates that Ruben Luna owned at least three commercial properties in New York City with 38,600 square feet and a city-determined market value of $8.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 58 percent of the 38,600 square feet of built space are retail properties, with mixed-use properties next occupying 42 percent of the space. The bulk, or 58 percent of the built space, is in Bronx, with Brooklyn next at 42 percent of the space.
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