JSB Capital pays $38M to Kushner Cos. for 6 East Village walkups

JSB Capital Group paid $38 million to Kushner Companies for six walkup properties in the East Village, in two separate transactions. JSB Capital Group assumed a $31.75 million loan held by Series 2020-B17 and serviced by K-Star Asset Management.

In the first, JSB Capital Group through the entity Evp Owner LLC paid $27 million to Kushner Companies through the entity Kushner Village 329 East 9th LLC for the nine-unit residential walkup building (C7) at 331 East 9th Street in East Village, Manhattan, nine-unit residential walkup building (C7) at 333 East 9th Street in East Village, Manhattan, and eight-unit residential walkup building (C7) at 335 East 9th Street in East Village, Manhattan. The expected use is cash flowing.
The deal closed on September 30, 2024 and was recorded on October 7, 2024. The four properties have 29,493 square feet of built space and 4,077 square feet of additional air rights for a total buildable of 33,576 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $914 and the price per buildable square foot is $803 per the PincusCo analysis.

In the second, JSB Capital Group through the entity Evp Owner LLC paid $11 million to Kushner Companies through the entity Village Kf 516 East 13th LLC for the 10-unit residential walkup building (C1) at 516 East 13th Street in Alphabet City, Manhattan and 10-unit residential walkup building (C1) at 518 East 13th Street in Alphabet City, Manhattan. The expected use is cash flowing. The deal closed on September 30, 2024 and was recorded on October 7, 2024. The two properties have 20,020 square feet of built space and 619 square feet of additional air rights for a total buildable of 20,648 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $551 and the price per buildable square foot is $534 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 Kushner Companies was Matthew Burrows. The signatory for JSB Capital Group was Jonah Jay Lobel. The contract date was June 25, 2024. JSB assumed a $31.75 million loan Series 2020-B17|K-Star Asset Management. Kushner bought these for $20.25 million on March 14, 2013.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer JSB Capital Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Kushner Companies purchased one property in one transaction for a total of $33.8 million and sold 18 properties in 13 transactions for a total of $215.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Tara Dexter, head officer and Luis Rodriguez, site manager. The business entity is Kushner Village 329 East 9th Llc.

The most recent loan totaled $31.8 million and was provided by Citibank on February 13, 2020.

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 two DOB violations, $17,925 in ECB penalties, 53 housing violations, $19,655 in OATH penalties, and one housing litigation in the last year.

Development

For the tax lot buildings, four out of the four buildings received a initial certificate of occupancy in the last ten years. 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 335 East 9th Street, PincusCo has identified the owners of 23 of the 34 commercial properties representing 268,047 square feet of the 357,523 square feet. The largest owner is Ryco Capital, followed by David Ogrin and then Icon Realty Management.
There are no active new building construction projects on this tax block.

The majority, or 76 percent of the 357,523 square feet of built space are walkup buildings, with elevator buildings next occupying 21 percent of the space.

The seller

The PincusCo database currently indicates that Kushner Companies owned at least 40 commercial properties with 676 residential units in New York City with 495,687 square feet and a city-determined market value of $173.2 million. (Market value is typically about 50% of actual value.) The portfolio has $484.4 million in debt, with top three lenders as AIG, Argentic Investment Management, and MSC 2019-L3 respectively. Within the portfolio, the bulk, or 73 percent of the 495,687 square feet of built space are walkup properties, with office properties next occupying 19 percent of the space. The bulk, or 71 percent of the built space, is in Manhattan, with Brooklyn next at 29 percent of the space.

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