Japanese firm pays $10.1M to Icon Realty for 16-unit walkup in Lenox Hill

The Japanese investment firm Norbil Trust Co. through the entity Norbil Investment paid $10.1 million to Icon Realty Management through the entity 405 East 78 Realty LLC for the 16-unit residential walkup building (C1) at 405 East 78th Street in Lenox Hill, Manhattan. The expected use is cash flowing.
The deal closed on August 29, 2024 and was recorded on September 12, 2024. The property has 9,262 square feet of built space and 944 square feet of additional air rights for a total buildable of 10,216 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,090 and the price per buildable square foot is $988 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 May 9, 2007, for $2 million. The signatory for Icon Realty Management was Terrence Lowenberg. The signatory for Norbil Trust Co. was Norbil Trust Co.. The contract date was July 11, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Norbil Trust Co. purchased one property in one transaction for a total of $5.8 million and has no record it sold any properties over the past 24 months.
The seller Icon Realty Management 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 Terrence Lowenberg, head officer and Frank Figueroa, site manager. The business entities are Icon Realty Management, Llc and 405 East 78 Realty, Llc.

The property

The residential walkup building with 16 residential units in Lenox Hill has 9,262 square feet of built space and 944 square feet of additional air rights for a total buildable of 10,216 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 102 feet deep with a total lot size of 2,554 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.9 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 two housing violations and $1,930 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on March 11, 2021. On the lot, there is one active new building construction project, 122239988, for a 12-unit, 9,849 square-foot R-2 building. The project was submitted by Todd Cohen with plans filed December 30, 2014 and it has not been permitted yet.

The block

On this tax block, PincusCo has identified the owners of 18 of the 22 commercial properties representing 259,528 square feet of the 282,174 square feet. The largest owner is Manocherian Brothers, followed by Margules Properties and then Ira Lifshutz.
On the tax block, there was one new building construction project filed totaling 9,849 square feet. It is a 12-unit, 9,849 square-foot residential (R-2) building submitted by Todd Cohen with plans filed December 30, 2014 and it has not been permitted yet.

The majority, or 49 percent of the 282,174 square feet of built space are walkup buildings, with elevator buildings next occupying 47 percent of the space.

The seller

The PincusCo database currently indicates that Icon Realty Management owned at least 20 commercial properties with 365 residential units in New York City with 230,133 square feet and a city-determined market value of $87.9 million. (Market value is typically about 50% of actual value.) The portfolio has $154.5 million in debt, borrowed from Series 2019-Icon. Within the portfolio, the bulk, or 61 percent of the 230,133 square feet of built space are walkup properties, with elevator properties next occupying 37 percent of the space. The bulk, or 76 percent of the built space, is in Manhattan, with Brooklyn next at 24 percent of the space.

The buyer

The PincusCo database currently indicates that Norbil Trust Co. owned at least two commercial properties with 13 residential units in New York City with 9,900 square feet and a city-determined market value of $3.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Brooklyn.

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