Kenbishi Sake Brewing pays $8.3M for 7-unit walkup in Turtle Bay

The centuries-old Japanese sake brewery Kenbishi Sake Brewing Co. Ltd. paid $8.3 million to Peak Capital Advisors through the entity 355 50th Owner LLC for the seven-unit residential walkup building (C7) at 355 East 50th Street in Turtle Bay, Manhattan.
The deal closed on October 26, 2023 and was recorded on October 31, 2023. The property has 6,960 square feet of built space and 13,105 square feet of additional air rights for a total buildable of 20,070 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,199 and the price per buildable square foot is $416 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 August 31, 2022, for $4.4 million. The signatory for Peak Capital Advisors was Alex Rabin. The signatory for Kenbishi Sake Brewing Co. Ltd. was Kenji Otsubo. The contract date was September 26, 2023. Kenbishi Sake Brewing Co. Ltd. is reported to be a Japanese sake brewery founded in 1505. The property is in care of Otsubo Realty.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Kenbishi Sake Brewing Co. Ltd. had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Michael Lohan purchased one properties in one transactions for a total of $4.4 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes David Gomez, head officer and Cynthia Ramirez, site manager. The business entity is 355 50th Owner Llc.

The property

The residential walkup building with 7 residential units in Turtle Bay has 6,960 square feet of built space and 13,105 square feet of additional air rights for a total buildable of 20,070 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,007 square feet. The zoning is R10 which allows for up to 10 times floor area ratio (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 for the past 24 months. In addition, according to city public data, the property has received one DOB violation and $700 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 this tax block, PincusCo has identified the owners of 11 of the 21 commercial properties representing 303,472 square feet of the 421,507 square feet. The largest owner is Toni Park, followed by Stonehenge NYC and then Solil Management.
There are no active new building construction projects on this tax block.

The majority, or 79 percent of the 421,507 square feet of built space are elevator buildings, with walkup buildings next occupying 15 percent of the space.

The seller

The PincusCo database currently indicates that Peak Capital Advisors owned at least 40 commercial properties with 342,834 square feet, 381 residential units and a city-determined market value of $101.6 million. (Market value is typically about 50% of actual value.) The portfolio has $122.5 million in debt, with top three lenders as Amalgamated Bank, Prime Finance Partners, and Derby Copeland Capital respectively. Within the portfolio, the bulk, or 83 percent of the 342,834 square feet of built space are walkup properties, with mixed-use properties next occupying 9 percent of the space. The bulk, or 40 percent of the built space, is in Brooklyn, with Queens next at 34 percent of the space.

Direct link to Acris document. link