Investor pays $4.1M to Robert Cheung for office in Chinatown

UPDATED 7:10 a.m., July 11, 2024: An individual investor through the entity 6 Allen Corp paid $4.1 million to Robert Cheung through the entity Chuang Ye Mansion LLC for midblock office building at 4 Allen Street in Chinatown, Manhattan.
The deal closed on February 15, 2022 and was recorded on March 4, 2022. The property has 5,731 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $715 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 Robert Cheung was Robert Cheung.

Prior sales and revenue

The seller Robert Cheung purchased one property in one transaction for a total of $15 million and had not sold any properties over the same time period. The 5,731-square-foot property generated revenue of $277,700 or $48 per square foot, according to the most recent income and expense figures.

The property

The 4 Allen Street parcel has frontage of 61 feet and is 19 feet deep with a total lot size of 947 square feet. The lot is irregular. The city-designated market value for the property in 2022 is $1.3 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the three buildings received an initial certificate of occupancy in the last ten years. 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 Chinatown, the bulk, or 33 percent of the 9 million square feet of built space are residential walkup buildings, with mixed-use buildings next occupying 16 percent of the space. In sales, Chinatown has had very little sales volume relative to other neighborhoods with $109.6 million in sales volume in the last two years. For development, Chinatown has had very little major development activity relative to other neighborhoods.It had 261,484 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

There is one active new building construction project totaling 9,898 square feet. It is a 9,898-square-foot B building developed by William Helm with plans filed October 1, 2012 and permitted April 21, 2014.

The majority, or 57 percent of the 124,525 square feet of built space are hotel buildings, with residential walkup buildings next occupying 29 percent of the space.

The seller

The PincusCo database currently indicates that Robert Cheung owned at least one commercial property with 29,250 square feet and a city-determined market value of $8.1 million. (Market value is typically about 50% of actual value.) The portfolio has $11.2 million in debt, borrowed from Arbor Realty Trust. The portfolio consists of at least a single residential elevator property. It is located in Brooklyn.

Surrounding

Within a 400-foot radius of 4 Allen Street, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, one was in new building development. It was a new building permit application filed on October 22, 2021 for a 14,801-square-foot R-2 building with 10 residential units at 24 Orchard Street.
Of those three items, one was for major renovation including a certificate of occupancy change. It was a permit issued on August 6, 2020 for the $372,500 renovation of 19,722-square-foot R-2 building with 11 residential units at 83 Canal Street.
One of those three items was a sale which NNYY LLC bought the 4,179-square-foot, two-unit mixed-use building (K4) on 24 Orchard Street for $6.7 million from Si Hyun Ok on November 16, 2020.

UPDATED: The name of a buyer was removed at the request of the individual.

Direct link to Acris document. link