Kano Real Estate pays $8.5M for retail in Yorkville

Kano Real Estate Investors through the entity Third Avenue 1477 LLC paid $8.5 million to Rodney V. R. Spring through the entity 1477 Nyc Limited Partnership for mixed-use building (K2) at 1477 Third Avenue in Yorkville, Manhattan.
The deal closed on July 15, 2022 and was recorded on July 29, 2022. The property has 4,745 square feet of built space and 21,209 square feet of additional air rights for a total buildable of 25,960 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,791 and the price per buildable square foot is $327 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 Rodney V. R. Spring was Rodney V. R. Spring. The signatory for Kano Real Estate Investors was Noum Shemel. David Shemel and Noum Shemel lead Kano Real Estate Investors.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Kano Real Estate Investors had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Rodney V. R. Spring had not purchased any other properties and had not sold any properties over the same time period. The 4,745-square-foot property generated revenue of $528,500 or $111 per square foot, according to the most recent income and expense figures.

The property

The 1477 Third Avenue parcel has frontage of 25 feet and is 101 feet deep with a total lot size of 2,596 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 $2.4 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 neighborhood

In Yorkville, the majority, or 60 percent of the 26.5 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Yorkville has 2.1 times the average sales volume among other neighborhoods with $707.8 million in sales volume in the last two years and is the 21st highest in Manhattan. For development, Yorkville has 1.7 times the average amount of major developments relative to other neighborhoods and is the 17th highest in Manhattan. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 22 commercial properties representing 76,603 square feet of the 248,843 square feet. The largest owner is LC Lemle Real Estate Group, followed by Sky Management and then Alan Tauber. There are no active new building construction projects on this tax block.

The majority, or 39 percent of the 248,843 square feet of built space are walkup buildings, with elevator buildings next occupying 29 percent of the space.

The buyer

The PincusCo database currently indicates that Kano Real Estate Investors owned at least 17 commercial properties in New York City with 146,992 square feet and a city-determined market value of $73.7 million. (Market value is typically about 50% of actual value.) The portfolio has $43.6 million in debt, borrowed from Israel Discount Bank. Within the portfolio, the bulk, or 54 percent of the 146,992 square feet of built space are walkup properties, with mixed-use properties next occupying 34 percent of the space. They are all located in Manhattan.

Direct link to Acris document. link