Japanese firm pays $4.2M to Hildreth Real Estate for mixed-use in Turtle Bay

Kanamori America paid $4.2 million to Hildreth Real Estate Advisors through the entity 838 2nd Ave LLC for the three-unit mixed-use building (S3) at 838 Second Avenue in Turtle Bay, Manhattan.
The deal closed on April 18, 2023 and was recorded on May 4, 2023. The property has 3,600 square feet of built space and 8,996 square feet of additional air rights for a total buildable of 12,600 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,166 and the price per buildable square foot is $333 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 July 14, 2021, for $2.8 million. The signatory for Hildreth Real Estate Advisors was Lisa Urban. The signatory for Kanamori America was Devin Yasuda. David Shorenstein leads Hildreth Real Estate Advisors, which bought the property for $2.79 million in July 2021. Devin Yasuda is an attorney.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Kanamori America had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Hildreth Real Estate Advisors purchased seven properties in seven transactions for a total of $28.5 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes David Shorenstein, head officer and Aaron Johnson, site manager. The business entity is 838 2nd Ave Llc. The 3,600-square-foot property generated revenue of $182,088 or $51 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 3 residential units in Turtle Bay has 3,600 square feet of built space and 8,996 square feet of additional air rights for a total buildable of 12,600 square feet according to a PincusCo analysis of city data. The parcel has frontage of 18 feet and is 70 feet deep with a total lot size of 1,260 square feet. The zoning is C1-9 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 $2.6 million. The most recent loan totaled $5.2 million and was provided by Maxim Capital Group on February 18, 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 $860 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 Turtle Bay, The bulk, or 36 percent of the 9 million square feet of commercial built space are specialty buildings, with elevator buildings next occupying 32 percent of the space. In sales, Turtle Bay has had very little sales volume relative to other neighborhoods with $118.8 million in sales volume in the last two years. For development, Turtle Bay has had very little major development activity relative to other neighborhoods.It had 20,898 square feet of commercial and multi-family construction under development in the last two years, which represents 0.23 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the 14 commercial properties representing 186,255 square feet of the 1,337,242 square feet. The identified owner is Brodsky Organization.
On the tax block, there were two new building construction projects totaling 187,330 square feet. The largest is a 96,501 square-foot mercantile (M) building submitted by Joseph Stavrach with plans filed August 26, 2015 and it has not been permitted yet. The second largest is a 44-unit, 90,829 square-foot residential (R-2) building submitted by Joseph Stavrach with plans filed February 11, 2015 and it has not been permitted yet.

The majority, or 69 percent of the 1.3 million square feet of built space are office buildings, with specialty buildings next occupying 14 percent of the space.

The seller

The PincusCo database currently indicates that Hildreth Real Estate Advisors owned at least seven commercial properties with 25 residential units in New York City with 30,742 square feet and a city-determined market value of $17.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are mixed-use properties. They are all located in Manhattan.

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