Hirshmark Capital buys $2M note secured by mixed-use building in Nolita

Hirshmark Capital through the entity 181 Mott Street Funding LLC bought a note with an original principal of $2.1 million from Dime Community Bank secured by a four-unit mixed-use building (S4) at 181 Mott Street in Nolita, Manhattan.
The deal closed on April 28, 2023 and was recorded on August 15, 2023. The property has 9,855 square feet of built space according to a PincusCo analysis of city data.  The property is controlled by Ivy Arce.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Ivy Arce, head officer. The business entity is Casa 181 L.L.C.

The property

The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 square feet. The lot is irregular. The zoning is C6-1 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $5.4 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 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 $1 million on this tax lot.

The neighborhood

In Nolita, The bulk, or 50 percent of the 3.1 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 20 percent of the space. In sales, Nolita has had very little sales volume relative to other neighborhoods with $122.3 million in sales volume in the last two years. For development, Nolita has had very little major development activity relative to other neighborhoods.It had 97,309 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.

The block

On this tax block, PincusCo has identified the owners of three of the 13 commercial properties representing 56,986 square feet of the 174,734 square feet. The largest owner is Dalan Management, followed by Highpoint Property Group and then Kahen Properties.
There are no active new building construction projects on this tax block.

The majority, or 78 percent of the 174,734 square feet of built space are walkup buildings, with mixed-use buildings next occupying 17 percent of the space.

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