Halil Djonbalij pays $12.4M to Morgan Group, Barberry Rose in separate deals

Halil Djonbalij paid a total of $12.4 million to the Morgan Group and Barberry Rose Management Company is two unrelated deals for two rental buildings in New York City.

In the larger deal, Halil Djonbalij through the entity Elio&Sons1 LLC paid $6.7 million to the Morgan Group through the entity Brooke-Nullah LLC for the 54-unit residential elevator building (D7) at 1265 Gerard Avenue in Concourse, Bronx.
The deal closed on June 7, 2023 and was recorded on June 23, 2023. The property has 67,724 square feet of built space and 7,500 square feet of additional air rights for a total buildable of 75,250 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $98 and the price per buildable square foot is $88 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 June 27, 2011, for $5.4 million. The signatory for the Morgan Group was Scott Morgan. The signatory for Halil Djonbalij was Halil Djonbalij.

In the smaller deal, Halil Djonbalij through the entity Elio&Sons2 LLC paid $5.7 million to Barberry Rose Management Company through the entity 9-15 Post Holding LLC for the 48-unit residential walkup building (C1) at 9 Post Avenue in Inwood, Manhattan. The deal closed on June 7, 2023 and was recorded on June 23, 2023. The property has 42,064 square feet of built space and 19,993 square feet of additional air rights for a total buildable of 61,996 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $134 and the price per buildable square foot is $91 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 October 29, 2018, for $10.4 million. The signatory for Barberry Rose Management Company was Lewis M. Barbanel. The signatory for Halil Djonbalij was Halil Djonbalij.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Halil Djonbalij had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Morgan Group had not purchased any other properties and sold 12 properties in nine transactions for a total of $64 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Brooke Morgan, head officer and Ryan Morgan, shareholder. The business entities are The Morgan Group Llc and Brooke-Nullah Llc. The 67,724-square-foot property generated revenue of $794,762 or $12 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 54 residential units in Concourse has 67,724 square feet of built space and 7,500 square feet of additional air rights for a total buildable of 75,250 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 125 feet deep with a total lot size of 12,500 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.3 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 49 housing violations and two housing litigations 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 two of the 14 commercial properties representing 113,863 square feet of the 332,943 square feet. The two identified owners are New York Police Department and Morgan Group.
There are no active new building construction projects on this tax block.

The majority, or 58 percent of the 332,943 square feet of built space are specialty buildings, with elevator buildings next occupying 20 percent of the space.

The seller

The PincusCo database currently indicates that Morgan Group owned at least 28 commercial properties with 1,399 residential units in New York City with 1,453,681 square feet and a city-determined market value of $85.8 million. (Market value is typically about 50% of actual value.) The portfolio has $158.1 million in debt, borrowed from Morgan Stanley. Within the portfolio, the bulk, or 64 percent of the 1,453,681 square feet of built space are elevator properties, with walkup properties next occupying 36 percent of the space. They are all located in Bronx.

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