Kahen Properties pays $22.55M for two walkups in Lenox Hill, adds to likely dev site

Kahen Properties paid $22.55 million to two separate companies for two adjacent residential walkup buildings on Third Avenue in Lenox Hill, in Manhattan. Kahen now controls three parcels from 1020 Third Avenue to 1026 Third Avenue with a total of 77 feet for a likely development site. The corner at East 61st Street according to city records is not owned by Kahen, instead is owned by members of the Schiavetta family through the entity Vinmar Realty.

In the larger deal, Kahen Properties through the entity Third North Holdings LLC paid $12.8 million to Jans Investment Company through the entity 1020 Third Avenue Associates, L.P. for the nine-unit residential walkup building (C7) at 1022 3rd Avenue in Lenox Hill, Manhattan.
The deal closed on July 12, 2022 and was recorded on July 20, 2022. The property has 7,910 square feet of built space and 19,284 square feet of additional air rights for a total buildable of 27,200 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,618 and the price per buildable square foot is $470 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 Jans Investment Company was Anthony Felzen. The signatory for Kahen Properties was Majid Kahen.

In the second, Kahen Properties through the entity Third North Holdings LLC paid $9.8 million to an affiliate of Tri-Star Equities through the entity Portfolio4 LLC for the mixed-use building (K4) at 1026 Third Avenue in Lenox Hill, Manhattan.
The deal closed on July 12, 2022 and was recorded on July 20, 2022. The property has 5,550 square feet of built space and 11,458 square feet of additional air rights for a total buildable of 17,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,756 and the price per buildable square foot is $573 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 September 9, 2021, for $6.2 million. The signatory for Tri-Star Equities was Rod Feldman. The signatory for Kahen Properties was Majid Kahen. Two other companies, Portfolio3 LLC and Portfolio5 LLC, bought properties in Manhattan in late 2020 and 2021.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Kahen Properties had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Jans Investment Company 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 Tony Felzen, head officer and Frederick Rudd, officer. The business entity is 1020 Third Avenue Associates. The 7,910-square-foot property generated revenue of $693,865 or $88 per square foot, according to the most recent income and expense figures.

The property

The 1022 3rd Avenue parcel has frontage of 32 feet and is 85 feet deep with a total lot size of 2,720 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 $4.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 12 of the 47 commercial properties representing 36,110 square feet of the 463,974 square feet. The largest owner is Arris Properties Group, followed by Vrahos LLC and then Icon Realty Management. There is one active new building construction project totaling 9,899 square feet. It is a seven-unit, 9,899-square-foot R-2 building developed by Majid Kahen with plans filed March 4, 2022 and it has not been permitted yet.

the majority, or 56 percent of the 404,431 square feet of built space are office buildings, with walkup buildings next occupying 19 percent of the space.

The buyer

The PincusCo database currently indicates that Kahen Properties owned at least seven commercial properties in New York City with 228,854 square feet and a city-determined market value of $35.5 million. (Market value is typically about 50% of actual value.) The portfolio has $31.3 million in debt, with top three lenders as Santander Bank, Signature Bank, and PIMCO respectively. Within the portfolio, the bulk, or 60 percent of the 228,854 square feet of built space are elevator properties, with walkup properties next occupying 32 percent of the space. The bulk, or 45 percent of the built space, is in Queens, with Manhattan next at 32 percent of the space.

Direct link to Acris document. link