Kahen Properties signs $5M contract with church for redevelopment site in East Harlem

Sharon Kahen’s Kahen Properties through the entity Kahen Development Group LLC signed a contract to pay $5 million to the Roman Catholic Church of Saint Paul and Holy Rosary for the church building at 442 East 119th Street and an adjacent building at 444 East 119th Street. The church is not landmarked, according to a review of city records.

The purchase and sale agreement, dated June 28, 2024, was disclosed in a court filing that is required when a nonprofit or religious group seeks to sell significant assets. The contract identified the broker as Ariel Property Advisors. The agreement includes an ambiguous notice that the buyer intends to demolish one or both of the the existing buildings but does not specify which one or both, “Purchaser intends, following the Closing, to demolish the existing Building and perform ground-up construction.”

According to the Ariel Property Advisors’ property listing, the two parcels provide 133 feet of frontage along the south side of East 119th Street, and along with 4,930 buildable square feet of air rights transferred from 446 East 119th Street, the R7B zoning provides approximately 45,046 buildable square feet as-of-right. “Though the existing structures need extensive renovation, its 18,239 square feet may present a unique owner-user opportunity,” the listing said.

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The property

The first lot, 442 East 119th Street in East Harlem has 11,739 square feet of built space and 20,830 square feet of additional air rights for a total buildable of 32,547 square feet according to a PincusCo analysis of city data. The parcel has frontage of 107 feet and is 100 feet deep with a total lot size of 10,849 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.1 million.

The second lot, 444 East 119th Street in East Harlem has 6,500 square feet of built space and 1,059 square feet of additional air rights for a total buildable of 7,566 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 2,522 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $258,000.

Development

Over the past five years, there has been no NYC Department of Buildings new building, demolition, or alteration permit application valued at more than $20,000 filed for this parcel.

Violations and lawsuits

According to city public data, the property has received $50 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In East Harlem, The majority, or 51 percent of the 52.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 21 percent of the space. In sales, East Harlem has near average sales volume among other neighborhoods with $356.2 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, East Harlem has near average amount of major developments among other neighborhoods and is the 21st highest in Manhattan. It had 1.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 24 commercial properties representing 50,332 square feet of the 146,354 square feet. The largest owner is Angelo Santaniello, followed by El Barrio’S Operation Fightback and then George Aryeh. There are no active new building construction projects on this tax block.

The surrounding

Within a 400-foot radius of 442 East 119 Street, PincusCo identified one commercial real estate item of interests occurred over the past 24 months. It was a loan which BEB Capital borrowed $10.9 million from Valley National Bank secured by the 26,813-square-foot, 36-unit rental (D7) on EAST 118th Street on March 23, 2023.

Direct link to the property’s ACRIS page and link to DOB NOW portal.