Kenneth McCoy pays $5M for mixed-use in Midtown East

Kenneth McCoy through the entity 975 Blackrock LLC paid $5 million to Jason Sheridan and Denise Sheridan through the entity Jd Midtown Realty LLC for the five-unit mixed-use building (S5) at 975 2nd Avenue in Midtown East, Manhattan.
The deal closed on June 27, 2023 and was recorded on June 30, 2023. The property has 4,000 square feet of built space and 9,996 square feet of additional air rights for a total buildable of 14,000 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,250 and the price per buildable square foot is $357 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 20, 2013, for $5.1 million. The signatory for Jason Sheridan and Denise Sheridan was Jason Sheridan and Denise Sheridan. The signatory for Kenneth McCoy was Kenneth McCoy. Kenneth McCoy is managing member of the purchasing entity.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Kenneth McCoy had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Jason Sheridan 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 Jason Sheridan, head officer and Denise Sheridan, officer. The business entity is JD Midtown Realty Llc. The 4,000-square-foot property generated revenue of $202,320 or $51 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 5 residential units in Midtown East has 4,000 square feet of built space and 9,996 square feet of additional air rights for a total buildable of 14,000 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 70 feet deep with a total lot size of 1,400 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 $2.8 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 $150 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 neighborhood

In Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 2nd highest sale turnover among other neighborhoods in the city with $3.7 billion in sales volume in the last two years. For development, Midtown East is the 2nd most active neighborhood among other neighborhoods. It had 17 million square feet of commercial and multi-family construction under development in the last two years, which represents 27 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 20 commercial properties representing 428,773 square feet of the 544,341 square feet. The largest owner is Rudin Management, followed by Roy Israel and then Niall Moran.
On the tax block, there was one new building construction project filed totaling 20,033 square feet. It is a 15-unit, 20,033 square-foot residential (R-2) building submitted by Yehuda Mor with plans filed October 30, 2018 and permitted November 3, 2021.

The majority, or 60 percent of the 544,341 square feet of built space are office buildings, with hotel buildings next occupying 16 percent of the space.

Direct link to Acris document. link