Hamilton Lane buys $19.8M stake in 4 Dalan East Village rentals from Avenue Realty Capital

Hamilton Lane through the entity Hamilton Lane Va Re Sma, Lp acquired an interest from Avenue Realty Capital through the entity Arc II Avenue A Spv LLC valued at $19.8M for six-unit residential walkup building (C4) at 194 Avenue A in Alphabet City, Manhattan, three-unit mixed-use building (S3) at 196 Avenue A in Alphabet City, Manhattan, and three-unit mixed-use building (S3) at 503 East 12th Street in Alphabet City, Manhattan.
The deal closed on August 13, 2025 and was recorded on August 21, 2025. The four properties have 16,336 square feet of built space and 3,551 square feet of additional air rights for a total buildable of 19,888 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,212 and the price per buildable square foot is $995 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.)
This is for a 90 percent stake in the properties. ARC formed the entity ARC II Avenue A SPV LLC almost exactly 10 years ago, on August 26, 2015.

Hamilton Lane , a company with almost $1 trillion in assets under management, bought a majority stake valued at $62.9 million from RWN Capital at five other Dalan Real Estate buildings.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 194 Avenue A.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Hamilton Lane purchased five properties in two transactions for a total of $62.9 million and has no record it sold any properties over the past 24 months.
The seller Avenue Realty Capital had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Andrew Wrublin, head officer and Viktor Ivezaj, site manager. The business entities are Dalan Management and Avenue A Corner Owner Llc.

The property

The residential walkup building with 6 residential units in Alphabet City has 16,336 square feet of built space and 3,551 square feet of additional air rights for a total buildable of 19,888 square feet according to a PincusCo analysis of city data. The parcel has frontage of 28 feet and is 51 feet deep with a total lot size of 1,486 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.6 million. The most recent loan totaled $14.8 million and was provided by Signature Bank on August 17, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation, $625 in ECB penalties, 12 housing violations, and $1,800 in OATH penalties in the last year.

Development

For the tax lot buildings, two out of the four buildings received a initial certificate of occupancy in the last ten years. 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 the tax block of 194 Avenue A, PincusCo has identified the owners of 18 of the 37 commercial properties representing 131,729 square feet of the 296,752 square feet. The largest owner is Dalan Real Estate, followed by JSB Capital Group and then Patrick McElhone.
On the tax block, there was one new building construction project filed totaling 10,589 square feet. It is a 10-unit, 10,589 square-foot residential (R-2) building submitted by Juan Barahona with plans filed March 14, 2019 and permitted October 2, 2020.

The majority, or 86 percent of the 296,752 square feet of built space are walkup buildings, with mixed-use buildings next occupying 7 percent of the space.

The buyer

The PincusCo database currently indicates that Hamilton Lane owned at least four commercial properties with 95 residential units in New York City with 71,236 square feet and a city-determined market value of $29.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Manhattan.

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