Joseph Sutton, Gorjian pay $12.8M for 30-unit walkup in Little Italy

Joseph Sutton and Gorjian Real Estate Group through the entity 371 Broome Street LLC paid $12.8 million to Jackson Mak through the entity Good Luck Realty Corp. for the 30-unit residential walkup building (C7) at 373 Broome Street at the corner of Mott Street, in Little Italy, Manhattan. The expected use is cash flowing.

The deal closed on August 2, 2024 and was recorded on August 8, 2024. The property has 18,023 square feet of built space and 3,766 square feet of additional air rights for a total buildable of 21,804 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $710 and the price per buildable square foot is $587 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 Jackson Mak was Jackson Mak. The signatory for Joseph Sutton and Gorjian Real Estate Group was Cobby Gorjian, a principal with Gorjian Real Estate Group. The contract date was June 6, 2024. Joseph Sutton, with Wharton Residential Properties, and Gorjian Real Estate Group own the property as 50-50 tenants-in-common. Joseph Sutton is the son of Jeff Sutton, the owner of Wharton Properties, one of the largest retail owners in the city, while Gorjian has a large multifamily as well as commercial portfolio, mostly in Manhattan.

The brokers were Kevin Esh of Esh Property Group and Scott Dweck and Brandon Thomas of Latitude Property Group.
The Gorjian family was represented by Zachary Ziskin, Adam Lobel and Justin Zeitchik of Investment Property Realty Group.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the Wharton Properties purchased six properties in four transactions for a total of $34.9 million and sold 18 properties in 13 transactions for a total of $1.9 billion over the past 24 months.
The seller Jackson Mak 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 Jackson Mak, head officer and Nancy Mak, officer. The business entity is Good Luck Realty Corp.

The property

The residential walkup building with 30 residential units in Little Italy has 18,023 square feet of built space and 3,766 square feet of additional air rights for a total buildable of 21,804 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 74 feet deep with a total lot size of 3,622 square feet. The city-designated market value for the property in 2022 is $4.2 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 12 housing violations and $50 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 10 of the 39 commercial properties representing 153,847 square feet of the 425,546 square feet. The largest owner is Adam Daniels, followed by Christopher Goode and then Firebird Grove.
There are no active new building construction projects on this tax block.

The majority, or 53 percent of the 425,546 square feet of built space are walkup buildings, with mixed-use buildings next occupying 24 percent of the space.

The seller

The PincusCo database currently indicates that Jackson Mak owned at least two commercial properties in New York City with 76,437 square feet and a city-determined market value of $34.9 million. (Market value is typically about 50% of actual value.) The portfolio has $32 million in debt, with top three lenders as Maxim Credit Group, Patriot Bank, and Maverick Real Estate Partners respectively. Within the portfolio, all identified are hotel properties. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Wharton Properties owned at least 85 commercial properties with 212 residential units in New York City with 3,328,416 square feet and a city-determined market value of $1.6 billion. (Market value is typically about 50% of actual value.) The portfolio has $243.8 million in debt, with top three lenders as Valley National Bank, Bank of China, and Provident Bank respectively. Within the portfolio, the bulk, or 68 percent of the 3,328,416 square feet of built space are office properties, with retail properties next occupying 20 percent of the space. The bulk, or 85 percent of the built space, is in Manhattan, with Brooklyn next at 11 percent of the space.
The PincusCo database currently indicates that Gorjian Real Estate Group owned at least 10 commercial properties with 110 residential units in New York City with 240,730 square feet and a city-determined market value of $80.5 million. (Market value is typically about 50% of actual value.) The portfolio has $12 million in debt, borrowed from Citibank. Within the portfolio, the bulk, or 51 percent of the 240,730 square feet of built space are office properties, with walkup properties next occupying 31 percent of the space. They are all located in Manhattan.

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