Hao Ding pays $4.3M to Alan Luke for mixed-use in Lower East Side

Hao Ding through the entity 84 Orchard Street LLC paid $4.3 million to Alan Luke through the entity Citirich Realty Corp. for the two-unit mixed-use building (S2) at 84 Orchard Street in Lower East Side, Manhattan.
The deal closed on June 1, 2023 and was recorded on June 20, 2023. The property has 3,520 square feet of built space and 1,754 square feet of additional air rights for a total buildable of 5,276 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,215 and the price per buildable square foot is $811 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 March 27, 2007, for $1.4 million. The signatory for Alan Luke was Alan Luke. The signatory for Hao Ding was Hao Ding.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Hao Ding had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Alan Luke had not purchased any other properties and had not sold any properties over the same time period.

The property

The mixed-use building with 2 residential units in Lower East Side has 3,520 square feet of built space and 1,754 square feet of additional air rights for a total buildable of 5,276 square feet according to a PincusCo analysis of city data. The parcel has frontage of 22 feet and is 60 feet deep with a total lot size of 1,319 square feet. The zoning is C4-4A which allows for up to 4 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4 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 $150 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 Lower East Side, The majority, or 51 percent of the 23.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Lower East Side has 1.5 times the average sales volume among other neighborhoods with $521.4 million in sales volume in the last two years and is the 26th highest in Manhattan. For development, Lower East Side has had very little major development activity relative to other neighborhoods.It had 673,133 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 20 commercial properties representing 374,757 square feet of the 479,536 square feet. The largest owner is Sheryl Hempel, followed by Sanglimchi and then NYC Department Of Education.
On the tax block, there was one new building construction project filed totaling 11,125 square feet. It is a 12-unit, 11,125 square-foot residential (R-2) building submitted by Daniel Wise with plans filed September 1, 2017 and permitted October 13, 2022.

The majority, or 66 percent of the 479,536 square feet of built space are specialty buildings, with walkup buildings next occupying 24 percent of the space.

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