Henry Zheng, Sherry Xu Zheng pay $17.5M to Alfredo Pedro for hotel in Midtown East

Henry Zheng and Sherry Xu Zheng through the entity Millenium Queensland Holding LLC paid $17.5 million to Alfredo V. Pedro through the entity Carvi Properties Inc. for the hotel building (HB) at 152 East 55th Street in Midtown East, Manhattan.
The deal closed on August 16, 2022 and was recorded on August 31, 2022. The property has 18,281 square feet of built space and 6,827 square feet of additional air rights for a total buildable of 25,100 square feet according to PincusCo analysis of city data. The sale price per built square foot is $957 and the price per buildable square foot is $697 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 26, 2007, for $9.3 million. The signatory for Alfredo V. Pedro was Carlos Pedro. The signatory for Henry Zheng and Sherry Xu Zheng was Henry Zheng.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Henry Zheng had purchased any other properties and sold one property in one transaction for a total of $10.4 million over the past 24 months.
The seller Alfredo V. Pedro had not purchased any other properties and had not sold any properties over the same time period.

The property

The 152 East 55th Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,510 square feet. The zoning is C5-2 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.2 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

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Midtown East, the majority, or 82 percent of the 61.5 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has 4.1 times the average sales volume among other neighborhoods with $1.4 billion in sales volume in the last two years and is the 9th highest in Manhattan. For development, Midtown East is the most active neighborhood among other neighborhoods. It had 16.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 26 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 29 commercial properties representing 447,475 square feet of the 1,667,384 square feet. The largest owner is MRP Realty, followed by Rudin Management and then Solil Management.
There are no active new building construction projects on this tax block.

The majority, or 78 percent of the 1.6 million square feet of built space are office buildings, with elevator buildings next occupying 19 percent of the space.

The buyer

The PincusCo database currently indicates that Henry Zheng owned at least five commercial properties in New York City with 26,030 square feet and a city-determined market value of $8.3 million. (Market value is typically about 50% of actual value.) The portfolio has $17.2 million in debt, borrowed from Royal Business Bank. Within the portfolio, all identified are retail properties. They are all located in Queens.

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