Kassin Sabbagh Realty pays $5.8M to Golyan family for 62-unit rental in Rego Park

Kassin Sabbagh Realty through the entity 99-44 62 LLC paid $5.8 million to the Golyan family through the entity Goylan Enterprises LLC for the 62-unit residential elevator building (D1) at 99-44 62nd Avenue in Rego Park, Queens.
The deal closed on April 18, 2024 and was recorded on April 22, 2024. The property has 55,300 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $104 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.)
Kassin Sabbagh Realty, also known as KSR, is a large brokerage firm with a specialty in retail, but also executes investment sales, debt and other transactions. Affiliates of the company own property and lend through the company KSR Capital.

The seller bought the property on April 30, 2013, for $1.8 million. The signatory for Faraidoon Golyan was Faraidoon Golyan. The signatory for Kassin Sabbagh Realty was Abraham J. Kassin. The contract date was March 7, 2024.

Faraidoon Golyan through Golyan Enterprises placed this property on behalf of himself, his brother Joseph Golyan the estate for their late brother Bijan Golyan, into bankruptcy (1-23-41647-nhl) in May 2023 estimating the property to be worth $12 million. The Golyan family of Great Neck was locked in a bitter dispute over this and other properties.

KSR as the lender won the December 1, 2023, auction with a $5 million credit bid plus $802,000 in cash, according to the property transfer.

Faraidoon filed the bankruptcy petition on behalf of the entity, Goylan Enterprises LLC, which is owned by Faraidoon, his brother Joseph Golyan and the estate of their deceased brother Bijan Golyan, who died in 2020. Joseph is a medical doctor, as was Bijan. Faraidoon manages the family’s real estate assets. Joseph and Faraidoon and other family members have traded a half-dozen lawsuits alleging improprieties in the management of — or attempts to improperly take over — the assets which included the Rego Park property, another in Forest Hills at 69-02 Austin Street and another in Jackson Heights. Other lawsuits involve divorce, personal injury and foreclosure.

Castellan Credit bought the $6.5 million loan from Popular Bank in March 2019, and Kassin Sabbagh Realty bought the note from Castellan in November 2019, financed in part with a loan from Maxim Capital Group. KSR bought the note anonymously through the law firm Wachtel Missry with the company Rego Park Lender LLC.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Kassin Sabbagh Realty purchased six properties in six transactions for a total of $34.2 million and has no record it sold any properties over the past 24 months.
The seller Faraidoon Golyan 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 Joseph Misk, individual owner and John Catalic, agent. The business entities are Joseph N Misk As Receiver and Joseph Misk As Receiver.

The property

The residential elevator building with 62 residential units in Rego Park has 55,300 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 160 feet and is 100 feet deep with a total lot size of 15,999 square feet. The lot is irregular. The zoning is R4 which allows for up to 0.75 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $7.2 million.

Violations and lawsuits

The property was involved in one lawsuit and one bankruptcy over the past two years. The suit was a $12 million judgment concerning a accounting filed on June 10, 2022, by Joseph Golyan against Faraidoon Golyan. The bankruptcy was filed on May 11, 2023, by Faraidoon Golyan, Golyan Enterprises, Bijan Golyan, and Joseph Golyan citing assets of $12 million. In addition, according to city public data, the property has received nine DOB violations, $12,530 in ECB penalties, 28 housing violations, and $17,430 in OATH penalties in the last year.

Development

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, there were two new building construction projects totaling 10,016 square feet. The largest is a six-unit, 5,397 square-foot residential (R-2) building submitted by Grisha Leviyev with plans filed October 3, 2019 and permitted December 20, 2023. The second largest is a two-unit, 4,619 square-foot residential (R-3) building submitted by Rakhmin Malakov with plans filed February 25, 2013 and permitted July 28, 2014.

The majority, or 90 percent of the 61,749 square feet of built space are elevator buildings, with mixed-use buildings next occupying 10 percent of the space.

The seller

The PincusCo database currently indicates that Faraidoon Golyan owned at least two commercial properties in New York City with 20,250 square feet and a city-determined market value of $4.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 20,250 square feet of built space are office properties, with industrial properties next occupying 0 percent of the space. They are all located in Queens.

The buyer

The PincusCo database currently indicates that Kassin Sabbagh Realty owned at least five commercial properties with 28 residential units in New York City with 36,449 square feet and a city-determined market value of $7.6 million. (Market value is typically about 50% of actual value.) The portfolio has $16.5 million in debt, borrowed from East West Bank and Signature Bank. Within the portfolio, the bulk, or 43 percent of the 36,449 square feet of built space are retail properties, with walkup properties next occupying 29 percent of the space. The bulk, or 47 percent of the built space, is in Brooklyn, with Manhattan next at 29 percent of the space.

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