Investors pays $5.4M for 4-unit mixed-use in Lower East Side

Anahid Hatzigeorgiou and Aristotle Hatzigeorgiou through the entity 159 Rivington LLC paid $5.4 million to George G. Mueller through the entity 159 Rivington Street, LLC for the four-unit mixed-use building (S4) at 159 Rivington Street in Lower East Side, Manhattan. The expected use is cash flowing.
The deal closed on September 19, 2024 and was recorded on October 16, 2024. The property has 9,550 square feet of built space and 450 square feet of additional air rights for a total buildable of 10,000 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $565 and the price per buildable square foot is $540 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 3, 2006, for $3.7 million. The signatory for George G. Mueller was Sandor Krauss. The signatory for Anahid Hatzigeorgiou and Aristotle Hatzigeorgiou was Anahid Hatzigeorgiou. The contract date was April 2, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Anahid Hatzigeorgiou had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller George G. Mueller had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes George Mueller, head officer and Ting Ji, site manager. The business entity is 159 Rivington St Llc.

The property

The mixed-use building with 4 residential units in Lower East Side has 9,550 square feet of built space and 450 square feet of additional air rights for a total buildable of 10,000 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 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 $5.2 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 $2,350 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 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 near average sales volume among other neighborhoods with $258 million in sales volume in the last two years and is the 29th highest in Manhattan. For development, Lower East Side has had very little major development activity relative to other neighborhoods.It had 618,026 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 21 of the 47 commercial properties representing 203,954 square feet of the 521,081 square feet. The largest owner is Morris Platt, followed by Penn South Capital and then Seagram Properties.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 521,081 square feet of built space are walkup buildings, with elevator buildings next occupying 21 percent of the space.

The buyer

The PincusCo database currently indicates that Anahid Hatzigeorgiou owned at least one commercial property with eight residential units in New York City with 3,878 square feet and a city-determined market value of $907,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Brooklyn.

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