Khin Aye Kyawt pays $5.8M to Tarek Alam for mixed-use in Lenox Hill
Khin Aye Kyawt through the entity 1435 Second Ave LLC paid $5.8 million to Tarek Alam through the entity Sa 1435 LLC for six-unit mixed-use building (S5) at 1435 2nd Avenue in Lenox Hill, Manhattan.
The deal closed on September 23, 2022 and was recorded on October 18, 2022. The property has 4,340 square feet of built space and 9,275 square feet of additional air rights for a total buildable of 13,620 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,341 and the price per buildable square foot is $427 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 October 26, 2015, for $2.3 million. The signatory for Tarek Alam was Tarek Alam. The signatory for Khin Aye Kyawt was Khin Aye Kyawt.
Prior sales and revenue
Prior to this transaction, Pincusco has no record that the buyer Khin Aye Kyawt had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Tarek Alam had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Tarek Alam, head officer. The business entity is Sa1435 Llc.
The property
The 1435 2nd Avenue parcel has frontage of 18 feet and is 72 feet deep with a total lot size of 1,362 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 $2.5 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 Lenox Hill, the bulk, or 35 percent of the 51.9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $3.3 billion in sales volume in the last two years. For development, Lenox Hill has 1.6 times the average amount of major developments relative to other neighborhoods and is the 16th highest in Manhattan. It had 1.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of 18 of the 33 commercial properties representing 163,512 square feet of the 288,817 square feet. The largest owner is Related Companies, followed by EJS Group and then Elad Group.
On the tax block, there were two new building construction projects totaling 209,439 square feet. The largest is a 47-unit, 111,870-square-foot R-2 building developed by Sara Rubenstein with plans filed March 7, 2018 and permitted October 24, 2018. The second largest is a 38-unit, 97,569-square-foot R-2 building developed by Bill Shaughnessy with plans filed May 9, 2022 and it has not been permitted yet.
The majority, or 52 percent of the 239,033 square feet of built space are walkup buildings, with elevator buildings next occupying 38 percent of the space.
The seller
The PincusCo database currently indicates that Tarek Alam owned at least one commercial property in New York City with 11,105 square feet and a city-determined market value of $2.4 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single elevator property. It is located in Manhattan.
Direct link to Acris document. link