IB Global pays $9.4M for mixed-use in East Village

UPDATED, 3:50 a.m., Oct. 18, 2023: Ilan Bracha’s IB Global through the entity 171 First Avenue Lofts LLC paid $9.4 million to the entity 169-171 BH LLC for the four-unit mixed-use building (S4) at 171 1st Avenue in East Village, Manhattan.
The deal closed on October 6, 2023 and was recorded on October 12, 2023. The property has 10,425 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $901 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 November 25, 2019, for $14 million. The signatory for IB Global was Ilan Bracha. The contract date was June 20, 2023. Ilan Bracha founded IB Global in 2020.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer IB Global had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller had not purchased any other properties and had not sold any properties over the same time period. The business entity is 169-171 Bh Llc.

The property

The mixed-use building with 4 residential units in East Village has 10,425 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 23 feet and is 100 feet deep with a total lot size of 2,316 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.1 million. The most recent loan totaled $12 million and was provided by Bridgeinvest on November 25, 2019.

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 $150 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 neighborhood

In East Village, The bulk, or 44 percent of the 15.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 20 percent of the space. In sales, East Village has 1.7 times the average sales volume among other neighborhoods with $613.8 million in sales volume in the last two years and is the 22nd highest in Manhattan. For development, East Village has had very little major development activity relative to other neighborhoods.It had 407,259 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 20 of the 37 commercial properties representing 308,685 square feet of the 480,153 square feet. The largest owner is Soudabeh Rahbar, followed by Scharfman Organization and then Sassouni Management.
There are no active new building construction projects on this tax block.

The majority, or 56 percent of the 480,153 square feet of built space are walkup buildings, with elevator buildings next occupying 31 percent of the space.

Direct link to Acris document. link