Khaloyan Kapital pays $12M to Madison Realty, partner, for 11-unit walkup in NoHo

Khaloyan Kapital through the entity 17 Bleecker Owner LLC paid $12 million to Madison Realty Capital and Dror Rosenfeld through the entity Bleecker Street Investors LLC for the 11-unit residential walkup building (C5) at 17 Bleecker Street in NoHo, Manhattan. The expected use is cash flowing.
The deal closed on July 1, 2025 and was recorded on July 16, 2025. The property has 17,080 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $702 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.)
Madison Realty Capital through its now-defunct wholly owned entity Silverstone Property Group partnered with Rosenfeld to buy the property on May 31, 2011, for $5.5 million.

In the recent sale, the signatory for Madison Realty Capital and Dror Rosenfeld was Brian Shatz and Dror Rosenfeld. The signatory for David Khaloyan’s Khaloyan Kapital was Edward J. Bullard Jr. . The contract date was February 26, 2025.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Khaloyan Kapital purchased one property in one transaction for a total of $6.2 million and has no record it sold any properties over the past 24 months.
The seller Madison Realty Capital purchased five properties in four transactions for a total of $134.6 million and sold 10 properties in 10 transactions for a total of $218.1 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Zach Kadden, head officer and Kyle Koppel, site manager. The business entity is Bleecker Street Investors Llc. The 17,080-square-foot property generated revenue of $1.1 million or $64 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 11 residential units in NoHo has 17,080 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 40 feet and is 65 feet deep with a total lot size of 2,600 square feet. The lot is irregular. The zoning is M1-5/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The property is in the NoHo East Historic District. The city-designated market value for the property in 2022 is $5.6 million. The property has 3 rent regulated units according to city tax records from 2022.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $6.8 million commercial foreclosure concerning a loan filed on February 28, 2025, by Community Preservation Corporation, Neighborhood Restore HDFC, and Related Fund Management against Madison Realty Capital, Josh Zegen, and Brian Shatz. In addition, according to city public data, the property has received $300 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 24 commercial properties representing 251,612 square feet of the 378,821 square feet. The largest owner is Shulsky Properties, followed by Becker, Glynn, Muffly, Chassin & Hosinski Registered and then Zg Capital Partners.
On the tax block, there was one new building construction project filed totaling 6,758 square feet. It is a three-unit, 6,758 square-foot residential (R-2) building submitted by David Smilow with plans filed December 22, 2015 and it has not been permitted yet.

The majority, or 65 percent of the 378,821 square feet of built space are office buildings, with mixed-use buildings next occupying 13 percent of the space.

The seller

The PincusCo database currently indicates that Madison Realty Capital owned at least 62 commercial properties with 2,716 residential units in New York City with 2,750,480 square feet and a city-determined market value of $381.3 million. (Market value is typically about 50% of actual value.) The portfolio has $1.5 billion in debt, with top three lenders as Signature Bank, MF1 Capital, and Elliott Investment Management respectively. Within the portfolio, the bulk, or 71 percent of the 2,750,480 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 42 percent of the built space, is in Queens, with Manhattan next at 34 percent of the space.

The buyer

The PincusCo database currently indicates that Khaloyan Kapital owned at least three commercial properties with 36 residential units in New York City with 26,515 square feet and a city-determined market value of $10.8 million. (Market value is typically about 50% of actual value.) The portfolio has $10.2 million in debt, borrowed from Emerald Creek Capital and Hanover Capital. Within the portfolio, all identified are walkup properties. They are all located in Manhattan.

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