JAM Real Estate pays $10.6M to Gould Investors for 20-unit rental in Lenox Hill

JAM Real Estate Partners through the entity Jam1269-1271 LLC paid $10.6 million to Gould Investors through the entity Gould 1269-1271 First Avenue LLC for the 20-unit residential elevator building (D9) at 1269-1271 First Avenue in Lenox Hill, Manhattan. The expected use is cash flowing.
The deal closed on December 27, 2024 and was recorded on January 2, 2025. The property has 15,490 square feet of built space and 21,402 square feet of additional air rights for a total buildable of 36,900 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $684 and the price per buildable square foot is $287 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 June 29, 2016, for $17.8 million. The signatory for Gould Investors was Mark Lundy. The signatory for JAM Real Estate Partners was Jared S. Pinchasick. The contract date was September 24, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer JAM Real Estate Partners had purchased any other properties and sold one property in one transaction for a total of $10.5 million over the past 24 months.
The seller Gould Investors 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 Nick Jutis, head officer and Seth Kobay, officer. The business entities are Majestic Property Management Corp and Gould 1269-1271 First Avenue Llc. The 15,490-square-foot property generated revenue of $935,937 or $60 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 20 residential units in Lenox Hill has 15,490 square feet of built space and 21,402 square feet of additional air rights for a total buildable of 36,900 square feet according to a PincusCo analysis of city data. The parcel has frontage of 49 feet and is 75 feet deep with a total lot size of 3,690 square feet. The zoning is C2-8 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.7 million. The most recent loan totaled $7.7 million and was provided by New York Community Bank on June 1, 2022.

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 $620 in ECB penalties, three housing violations, and $10,900 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 block

On this tax block, PincusCo has identified the owners of five of the 11 commercial properties representing 60,576 square feet of the 192,144 square feet. The largest owner is Ellen Hakim, followed by Georgetown Properties and then David Massey.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 192,144 square feet of built space are specialty buildings, with elevator buildings next occupying 20 percent of the space.

The seller

The PincusCo database currently indicates that Gould Investors owned at least three commercial properties with 24 residential units in New York City with 310,708 square feet and a city-determined market value of $117.4 million. (Market value is typically about 50% of actual value.) The portfolio has $45 million in debt, borrowed from AIG and Maverick Real Estate Partners. Within the portfolio, the bulk, or 93 percent of the 310,708 square feet of built space are office properties, with elevator properties next occupying 5 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Jam Real Estate Partners owned at least eight commercial properties with 119 residential units in New York City with 80,039 square feet and a city-determined market value of $32.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Manhattan.

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