Henry Friedman pays $4.2M to Stabilis for formerly bankrupt 15-unit walkup in East Village

Henry Friedman through the entity 444 East 13th Street Associates LLC paid $4.2 million to Stabilis Capital Management through the entity 444 Lender, LLC for the 15-unit residential walkup building (C7) at 444 East 13th Street in East Village, Manhattan.
The deal closed on January 23, 2024 and was recorded on February 5, 2024. The property has 12,384 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $339 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 Stabilis Capital Management was Salman A. Akbar Khan. The signatory for Henry Friedman was Henry Friedman. The contract date was January 23, 2024. Henry Friedman is sole member of the buyer entity. The seller Stabilis was the note holder. The maximum principal for the prior owner, Raphael Toledano, was $6.45 million which Madison Realty Capital gave in 2015. Toledano bought the property on January 15, 2015, for $6.1 million. Stabilis bought the debt in 2017. This property was transferred to Stabilis Capital Management in 2022 through a Southern District Bankruptcy case, 17-23143-rdd.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Henry Friedman had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Stabilis Capital Management 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 Eric Horn, head officer and Hunter Reisel, site manager. The business entities are Choice Ny Management and 444 East 13th St Llc. The 12,384-square-foot property generated revenue of $451,926 or $36 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 15 residential units in East Village has 12,384 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 24 feet and is 103 feet deep with a total lot size of 2,504 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2 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 two DOB violations, $500 in ECB penalties, 64 housing violations, $1,850 in OATH penalties, and one housing litigation 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 21 of the 34 commercial properties representing 287,424 square feet of the 392,139 square feet. The largest owner is Zdzislaw Czerny, followed by Tsukaki Co., Ltd. and then Kushner Companies.
There are no active new building construction projects on this tax block.

The majority, or 84 percent of the 392,139 square feet of built space are walkup buildings, with elevator buildings next occupying 9 percent of the space.

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