Japanese firm pays $22.8M to Peak for 2 walkups in Carnegie Hill

UPDATED: The Japanese firm Fukuoka Road Co. paid $22.8 million to Peak Capital Advisors through the entity 89 Owner LLC for the 14-unit residential walkup building (C4) at 161 East 89th Street in Carnegie Hill, Manhattan and 12-unit residential walkup building (C4) at 163 East 89th Street in Carnegie Hill, Manhattan. The expected use is cash flowing.
The deal closed on November 20, 2024 and was recorded on November 26, 2024. The two properties have 19,710 square feet of built space and 402 square feet of additional air rights for a total buildable of 20,136 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,156 and the price per buildable square foot is $1,132 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 Peak Capital Advisors was Alex Rabin and David Gomez. The contract date was September 19, 2024. Fukuoka Road Co. is a Japanese company in care of the New York office of the Japan-based Efficiency Capital Advisors.
Fairview Property Group’s John Florek brokered the sale for both buyer and seller.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Fukuoka Road Co. had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Peak Capital Advisors purchased 21 properties in 21 transactions for a total of $110 million and sold one property in one transaction for a total of $16.5 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes David Gomez, head officer and Cynthia Ramirez, site manager. The business entity is 89 Owner Llc. The two properties with a total of 19,710 square feet of built space generated revenue of $1.1 million per year or $54 per square foot. The sale price per square foot was $1,157.

The property

The residential walkup buildings with 26 residential units in Carnegie Hill has 19,710 square feet of built space and 402 square feet of additional air rights for a total buildable of 20,136 square feet according to a PincusCo analysis of city data. The parcels each have frontage of 25 feet and are 100 feet deep with a total lot size of 5,034 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 $3.3 million. The most recent loan totaled $13.3 million and was provided by Amalgamated Bank on November 10, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received 13 housing violations and $950 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 the tax block of 161 East 89th Street, PincusCo has identified the owners of 15 of the 22 commercial properties representing 360,378 square feet of the 474,305 square feet. The largest owner is Alexandra Koeppel, followed by Caiola Family and then John Young.
There are no active new building construction projects on this tax block.

The majority, or 68 percent of the 474,305 square feet of built space are elevator buildings, with walkup buildings next occupying 30 percent of the space.

The seller

The PincusCo database currently indicates that Peak Capital Advisors owned at least 52 commercial properties with 516 residential units in New York City with 435,570 square feet and a city-determined market value of $135.2 million. (Market value is typically about 50% of actual value.) The portfolio has $142.7 million in debt, with top three lenders as Amalgamated Bank, Prime Finance, and Derby Copeland Capital respectively. Within the portfolio, the bulk, or 80 percent of the 435,570 square feet of built space are walkup properties, with mixed-use properties next occupying 13 percent of the space. The bulk, or 41 percent of the built space, is in Brooklyn, with Manhattan next at 32 percent of the space.
UPDATED: Broker information was added.

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