Heritage Affordable Communities pays $6.3M for residential elevator in Harlem

Heritage Affordable Communities through the entity 250 West Partners LLC paid $6.3 million to Richard Olson through the entity 250 West Owners LLC for the midblock 32-unit residential elevator building at 246 West 116th Street in Harlem, Manhattan.
The deal closed on May 11, 2022 and was recorded on June 1, 2022. The property has 37,491 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $167 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.)

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Rich Olson, head officer and Richard Olson, officer. The business entities are 250w Owners Llc and 250 West Owners Llc.

The property

The 246 West 116th Street parcel has frontage of 75 feet and is 100 feet deep with a total lot size of 7,569 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The property has a 421A exemption that started in 2008 and expires in 2033.0. The city-designated market value for the property in 2022 is $2.5 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 received one DOB violation and $650 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 $5 million on this tax lot.

The neighborhood

In Harlem, the bulk, or 42 percent of the 99.7 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 24 percent of the space. In sales, Harlem has 2.2 times the average sales volume among other neighborhoods with $607.8 million in sales volume in the last two years and is the 20th highest in Manhattan. For development, Harlem has 2.8 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Manhattan. It had 2.6 million 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 were two pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 15 of the 34 commercial properties representing 227,925 square feet of the 400,382 square feet. The largest owner is Black Spruce Management, followed by Ryan Pedram and then DSA Property Group. There are no active new building construction projects on this tax block.

The majority, or 53 percent of the 458,003 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 27 percent of the space.

Surrounding

Within a 400-foot radius of 246 West 116th Street, PincusCo identified 10 commercial real estate items of interests occurred over the past 24 months.
Of those 10 items, two were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $823,591 and one permit with a total initial cost of $1 million. The most recent of these two items was the permit on October 15, 2020 for a 9,315-square-foot R-2 building with 14 residential units at 264 West 117th Street.
Of those 10 items, two were sales above $5 million totaling $18.7 million. The most recent of the two was Avi Dishi which bought the 9,630-square-foot, 10-unit rental (C4) on 264 West 115th Street and five other properties for $9.8 million from RMC Equities on October 25, 2021.
Of those 10 items, six were loans above $5 million totaling $248.9 million. The most recent of the six was Black Spruce Management which borrowed $189.4 million from Signature Bank secured by the 18,918-square-foot, 10-unit rental (C4) on 243 West 115th Street and 47 other properties on May 3, 2022.

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