Joyland Group pays $33.6M to Mount Sinai for conversions in Gramercy

Joyland Group, partnering with Borough Developers, paid $33.6 million to Mount Sinai Beth Israel for two hospital buildings, at 313-319 East 17th Street and 321 East 17th Street in Gramercy, Manhattan in two transactions. Borough Developers filed plans to convert each of the building into a residential use, yielding a total of 96 units at the two buildings.

In the larger purchase, Joyland Group through the entity 317 East 17th Street LLC paid $27.6 million to Mount Sinai through the entity Beth Israel Hospital Association for the specialty building (I1) at 313-319 East 17th Street in Gramercy, Manhattan. The expected use is conversion/addition.
The deal closed on December 16, 2024 and was recorded on January 6, 2025. The property has 70,848 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $389 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.)

Joyland Group through the entity 317 East 17th Street LLC paid $6 million to Mount Sinai through the entity Beth Israel Medical Center for the three-unit specialty building (I4) at 321 East 17th Street in Gramercy, Manhattan. The expected use is conversion/addition.
The deal closed on December 16, 2024 and was recorded on January 6, 2025. The property has 6,651 square feet of built space and 5,478 square feet of additional air rights for a total buildable of 12,124 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $905 and the price per buildable square foot is $496 per the PincusCo analysis.

The signatory for Mount Sinai was Vincent Tammaro. The signatory for Joyland Group was Joel Wertzberger. The contract date was July 25, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Joyland Group purchased three properties in three transactions for a total of $81.3 million and has no record it sold any properties over the past 24 months.
The seller Mount Sinai had not purchased any other properties and sold two properties in two transactions for a total of $5.4 million over the same time period.

The property

The specialty building in Gramercy has 70,848 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 104 feet and is 106 feet deep with a total lot size of 11,024 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $16.5 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 DOB violations, $1,250 in ECB penalties, and $1,250 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project, M01159579, for a 87-unit, 73,469 square-foot R-2 building. The project was submitted by Borough Developers and filed by Shimon Kleinman with plans filed December 27, 2024 and it has not been permitted yet.

The neighborhood

In Gramercy, The bulk, or 31 percent of the 11.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 24 percent of the space. In sales, Gramercy has 2 times the average sales volume among other neighborhoods with $520 million in sales volume in the last two years and is the 20th highest in Manhattan. For development, Gramercy has 1.9 times the average amount of major developments relative to other neighborhoods and is the 19th highest in Manhattan. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 19 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 14 commercial properties representing 408,814 square feet of the 505,155 square feet. The largest owner is NYU Langone Hospitals, followed by Croman Real Estate and then Minrav Development.
On the tax block, there were three new building construction projects totaling 135,201 square feet. The largest is a 40-unit, 55,340 square-foot residential (R-2) building submitted by CIM Group and filed by David Wellspring with plans filed September 7, 2018 and it has not been permitted yet. The second largest is a 50-unit, 55,321 square-foot residential (R-2) building submitted by Minrav Development and filed by Yehuda Mor with plans filed February 10, 2021 and permitted October 15, 2024.

The majority, or 83 percent of the 505,155 square feet of built space are specialty buildings, with walkup buildings next occupying 17 percent of the space.

The seller

The PincusCo database currently indicates that Mount Sinai owned at least two commercial properties in New York City with 3,319,505 square feet and a city-determined market value of $1.3 billion. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are specialty properties. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Joyland Group owned at least six commercial properties with 402 residential units in New York City with 71,781 square feet and a city-determined market value of $5.6 million. (Market value is typically about 50% of actual value.) The portfolio has $124.3 million in debt, with top three lenders as iCross Capital, Cross River Bank, and Maxim Capital Group respectively. Within the portfolio, the bulk, or 91 percent of the 71,781 square feet of built space are O3 properties, with industrial properties next occupying 9 percent of the space. The bulk, or 91 percent of the built space, is in Bronx, with Brooklyn next at 9 percent of the space.

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