Horizon Group pays $6.5M for 46-unit dev site on Lower East Side

Horizon Group through the entity Horizon At Chrystie LLC paid $6.5 million to Ronald Tien through the entity Lintien Corporation for the industrial building (E9) at 324 Broome Street in Lower East Side, Manhattan. The building has an alternate address of 125 Chrystie Street.
On the lot, there is one active new building construction project for a 46-unit, 46,912 square-foot R-2 building. The project was submitted by Brian Hamburger of the Horizon Group with plans filed August 28, 2023 and it has not been permitted yet.
The deal closed on October 4, 2023 and was recorded on October 17, 2023. The property has 12,696 square feet of built space and 19,687 square feet of additional air rights for a total buildable of 32,396 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $509 and the price per buildable square foot is $199 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 Ronald Tien was Ronald Tien. The signatory for Horizon Group was David Marom. This is a 99-year lease.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Horizon Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Ronald Tien had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Lower East Side has 12,696 square feet of built space and 19,687 square feet of additional air rights for a total buildable of 32,396 square feet according to a PincusCo analysis of city data. The parcel has frontage of 45 feet and is 93 feet deep with a total lot size of 4,308 square feet. The zoning is C6-3A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 7.52 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.2 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 one DOB violation and $700 in OATH penalties in the last year.

The neighborhood

In Lower East Side, The majority, or 51 percent of the 23.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Lower East Side has 1.5 times the average sales volume among other neighborhoods with $526.2 million in sales volume in the last two years and is the 25th highest in Manhattan. For development, Lower East Side has 1.3 times the average amount of major developments relative to other neighborhoods and is the 20th highest in Manhattan. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 19 commercial properties representing 46,058 square feet of the 201,341 square feet. The largest owner is Wade Guyton, followed by Marx Realty & Improvement and then Barry Lipsitz.
On the tax block, there were two new building construction projects totaling 57,757 square feet. The largest is a 46-unit, 46,912 square-foot residential (R-2) building submitted by Brian Hamburger with plans filed August 28, 2023 and it has not been permitted yet. The second largest is a 10,845 square-foot business (B) building submitted by Hannah Rademaker with plans filed January 24, 2019 and it has not been permitted yet.

The majority, or 28 percent of the 201,341 square feet of built space are walkup buildings, with mixed-use buildings next occupying 19 percent of the space.

The buyer

The PincusCo database currently indicates that Horizon Group owned at least nine commercial properties with 114 residential units in New York City with 139,010 square feet and a city-determined market value of $17.9 million. (Market value is typically about 50% of actual value.) The portfolio has $144.4 million in debt, with top three lenders as Bank Leumi, Bank Hapoalim, and Metropolitan Commercial Bank respectively. Within the portfolio, the bulk, or 59 percent of the 139,010 square feet of built space are elevator properties, with hotel properties next occupying 18 percent of the space. The bulk, or 82 percent of the built space, is in Brooklyn, with Manhattan next at 18 percent of the space.

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