Guy Peleg pays $7.1M for dev site in NoMad

Guy Peleg through the entity 140 Lexington Avenue LLC paid $7.1 million to Navnit Kumar through the entity 140 Lex LLC for vacant development site at 140 Lexington Avenue in NoMad, Manhattan.
The deal closed on June 10, 2022 and was recorded on June 23, 2022. The property has zero square feet of built space and 14,863 square feet of additional air rights for a total buildable of 14,863 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $476 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 August 31, 2016, for $9.1 million. The signatory for Navnit Kumar was Navnit Kumar. The signatory for Guy Peleg was Guy Peleg.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Guy Peleg purchased two properties in two transactions for a total of $8.8 million and has no record it sold any properties over the past 24 months.
The seller Navnit Kumar had not purchased any other properties and had not sold any properties over the same time period.

The property

The 140 Lexington Avenue parcel has frontage of 24 feet and is 100 feet deep with a total lot size of 2,469 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

On these lots, there is one active new building construction project for a 40-unit, 13,526-square-foot R-1 building. The project was developed by Navnit Kumar with plans filed July 17, 2017 and it has not been permitted yet.

The neighborhood

In NoMad, the majority, or 59 percent of the 14.3 million square feet of commercial built space are office buildings, with residential elevator buildings next occupying 17 percent of the space. In sales, NoMad has 3.8 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 12th highest in Manhattan. For development, NoMad has had very little major development activity relative to other neighborhoods.It had 268,290 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 10 of the 39 commercial properties representing 132,466 square feet of the 643,873 square feet. The largest owner is Caiola family, followed by Leeds Associates and then Evenhar Development. There is one active new building construction project totaling 13,526 square feet. It is a 40-unit, 13,526-square-foot R-1 building developed by Navnit Kumar with plans filed July 17, 2017 and it has not been permitted yet.

The majority, or 61 percent of the 873,121 square feet of built space are residential elevator buildings, with mixed-use buildings next occupying 11 percent of the space.

The seller

The PincusCo database currently indicates that Navnit Kumar owned at least one commercial property with 18,850 square feet and a city-determined market value of $4.6 million. (Market value is typically about 50% of actual value.) The portfolio has $8.5 million in debt, borrowed from BCB Community Bank and Fairview Partners Investment Management. The portfolio consists of at least a single office property. It is located in Manhattan.

The buyer

The PincusCo database currently indicates that Guy Peleg owned at least three commercial properties with 9,283 square feet and a city-determined market value of $2.7 million. (Market value is typically about 50% of actual value.) The portfolio has $8 million in debt, borrowed from Bank Leumi. Within the portfolio, the bulk, or 85 percent of the 9,283 square feet of built space are walkup properties, with mixed-use properties next occupying 15 percent of the space. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 140 Lexington Avenue, PincusCo identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, three were sales above $5 million totaling $43.1 million. The most recent of the three was Evenhar Development which bought the 8,000-square-foot, seven-unit mixed-use building (S5) on 150 Lexington Avenue for $6.2 million from Robert Newman on March 29, 2022.
Of those nine items, six were loans above $5 million totaling $123.2 million. The most recent of the six was Evenhar Development which borrowed $11 million from Fort Amsterdam Capital and Tilden Park Capital Management secured by the 8,000-square-foot, seven-unit mixed-use building (S5) on 150 Lexington Avenue and three other properties on March 29, 2022.

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