Japanese firm Yagihyo Shokusan pays $6.6M for 15-unit walkup in Hell’s Kitchen
The Japanese real estate investment company Yagihyo Shokusan through the entity Yagihyo Shokusan Co., Ltd. paid $6.6 million to the entity 340 West 48 Sg LLC in care of Relo Redac Inc., for the 15-unit residential walkup building (C1) at 340 West 48th Street in Hell’s Kitchen, Manhattan.
The deal closed on June 8, 2023 and was recorded on June 28, 2023. The property has 7,497 square feet of built space and 7,605 square feet of additional air rights for a total buildable of 15,110 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $880 and the price per buildable square foot is $436 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 December 21, 2018, for $4.8 million. The signatory for the seller was Neal R. Weinstein. Yagihyo Shokusan is a real estate development company based in Nagoya, Japan. The new owner is in care of the midtown-based property management company Rialto Management Corp.
Prior sales and revenue
Prior to this transaction, PincusCo has no record that the buyer Yagihyo Shokusan had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller manager Relo Redac Inc. purchased three properties in three transactions for a total of $15.3 million and sold one property in one transaction for a total of $13 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Michael Mintz, head officer and Charan Culai, site manager. The business entities are Md Squared Property Group and 340 West 48 Sg Llc. The 7,497-square-foot property generated revenue of $393,657 or $53 per square foot, according to the most recent income and expense figures.
The property
The residential walkup building with 15 residential units in Hell’s Kitchen has 7,497 square feet of built space and 7,605 square feet of additional air rights for a total buildable of 15,110 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,510 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.3 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 21 housing violations 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 15 of the 29 commercial properties representing 213,376 square feet of the 336,165 square feet. The largest owner is Van D. Fox, followed by Peter Tagios and then NYC Department Of Education.
On the tax block, there was one new building construction project filed totaling 50,000 square feet. It is a 169-unit, 50,000 square-foot hotel/dormitory/shelter (R-1) building submitted by McSam Hotel Group and filed by Sam Chang with plans filed July 31, 2020 and it has not been permitted yet.
The majority, or 46 percent of the 336,165 square feet of built space are walkup buildings, with specialty buildings next occupying 24 percent of the space.
The seller
The PincusCo database currently indicates that Relo Redac Inc. owned or managed at least three commercial properties with 41 residential units in New York City with 23,130 square feet and a city-determined market value of $9.2 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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