Jackson Group pays $14.5M for Madison Avenue mixed-use in Lenox Hill

The Chehebar family’s Jackson Group through the entity 803 Madison LLC paid $14.5 million to Sprayregen Real Estate Advisors through the entity 803 Madison Avenue, LLC for the mixed-use building (K4) at 803 Madison Avenue in Lenox Hill, Manhattan.
The deal closed on January 16, 2024 and was recorded on January 29, 2024. The property has 7,443 square feet of built space and 14,318 square feet of additional air rights for a total buildable of 21,760 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,948 and the price per buildable square foot is $666 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 Sprayregen Real Estate Advisors was Laurie Sprayregen. The signatory for Jackson Group was Gabriel Chehebar. The contract date was December 12, 2023. Laurie Netter Sprayregen is the daughter of Richard Netter. The Jackson Group is a retail-focused investment firm led by member of the Chehebar family. The Sprayregen family is affiliated with the storage company Tuck-it-Away.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Jackson Group purchased six properties in five transactions for a total of $34.9 million and sold three properties in three transactions for a total of $18.9 million over the past 24 months.

The property

The mixed-use building in Lenox Hill has 7,443 square feet of built space and 14,318 square feet of additional air rights for a total buildable of 21,760 square feet according to a PincusCo analysis of city data. The parcel has frontage of 22 feet and is 95 feet deep with a total lot size of 2,176 square feet. The zoning is C5-1 which allows for up to 4 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Upper East Side Historic District. The city-designated market value for the property in 2022 is $6.9 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 $2,000 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 Lenox Hill, The bulk, or 35 percent of the 52 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $4 billion in sales volume in the last two years. For development, Lenox Hill is the 9th most active neighborhood among other neighborhoods. It had 4.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 10 of the 30 commercial properties representing 176,109 square feet of the 371,929 square feet. The largest owner is Tatiana Botton, followed by Peter Sarosi and then Paolo Costa.
There are no active new building construction projects on this tax block.

The majority, or 45 percent of the 371,929 square feet of built space are elevator buildings, with office buildings next occupying 17 percent of the space.

The buyer

The PincusCo database currently indicates that Jackson Group owned at least eight commercial properties (but in fact it owns more) in New York City with 209,738 square feet and a city-determined market value of $41.7 million. (Market value is typically about 50% of actual value.) The portfolio has $27.8 million in debt, borrowed from Signature Bank and Safra National Bank. Within the portfolio, the bulk, or 55 percent of the 209,738 square feet of built space are retail properties, with mixed-use properties next occupying 45 percent of the space. The bulk, or 62 percent of the built space, is in Brooklyn, with Queens next at 38 percent of the space.

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