Hiyoshi Systems Co. pays $4.7M to Penn South Capital for 5-unit walkup in Alphabet City

Hiyoshi Systems Co. through the entity Hiyoshi Systems Co., Ltd. paid $4.7 million to Penn South Capital through the entity 191 East 7th LLC for the five-unit residential walkup building (C2) at 191 East 7th Street in Alphabet City, Manhattan. The expected use is cash flowing.
The deal closed on March 25, 2026 and was recorded on April 8, 2026. The property has 3,328 square feet of built space and 993 square feet of additional air rights for a total buildable of 4,320 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,401 and the price per buildable square foot is $1,079 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 August 10, 2023, for $2.7 million. The signatory for Penn South Capital was Parag Sawhney . The signatory for Hiyoshi Systems Co. was Michael A. Mulia . The contract date was February 17, 2026.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has no record that the buyer Hiyoshi Systems Co. had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Penn South Capital purchased eight properties in seven transactions for a total of $44.2 million and sold eight properties in seven transactions for a total of $55 million over the same time period. The 3,328-square-foot property generated revenue of $186,834 or $56 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 5 residential units in Alphabet City has 3,328 square feet of built space and 993 square feet of additional air rights for a total buildable of 4,320 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 57 feet deep with a total lot size of 1,080 square feet. The lot is irregular. 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 $3.3 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 $25 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 block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 19,923 square feet of the 196,545 square feet. The largest owner is Arbor Multifamily Acquisition Company, followed by Penn South Capital and then Mactaggart Family & Partners.
There are no active new building construction projects on this tax block.

The majority, or 59 percent of the 196,545 square feet of built space are specialty buildings, with walkup buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that Penn South Capital owned at least 31 commercial properties with 335 residential units in New York City with 229,549 square feet and a city-determined market value of $100.3 million. (Market value is typically about 50% of actual value.) The portfolio has $118.9 million in debt, with top three lenders as KeyBank, Benefit Street Partners, and Shelter Growth Capital Partners respectively. Within the portfolio, the bulk, or 56 percent of the 229,549 square feet of built space are walkup properties, with C6 properties next occupying 13 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Brooklyn next at 20 percent of the space.

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