Kings Capital pays $7.6M for two properties in Hell’s Kitchen

Kings Capital through the entity 356 West 48th Jv LLC paid $7.6 million to Richard Scheiner through the entity 404-406 West 51st St. Realty Corp. for the 15-unit residential elevator building (D1) at 406 West 51st Street in Hell’s Kitchen, Manhattan and 10-unit residential walkup building (C4) at 404 West 51st Street in Hell’s Kitchen, Manhattan. The expected use is cash flowing.
The deal closed on December 27, 2024 and was recorded on January 7, 2025. The two properties have 15,520 square feet of built space and 14,708 square feet of additional air rights for a total buildable of 30,220 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $489 and the price per buildable square foot is $251 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 signatory for Richard Scheiner was Richard Scheiner. The signatory for Kings Capital was Jeffrey Znaty. The contract date was June 15, 2023.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 404 West 51st Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Kings Capital purchased five properties in five transactions for a total of $24 million and sold one property in one transaction for a total of $11.8 million over the past 24 months.
The seller Richard Scheiner 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 Avery Scheiner, head officer and Richard Scheiner, officer. The business entity is 404-406 West 51st Street Realty Corp.

The property

The residential walkup building with 10 residential units in Hell’s Kitchen has 15,520 square feet of built space and 14,708 square feet of additional air rights for a total buildable of 30,220 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,510 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.1 million. The property has 4 rent regulated units according to city tax records from 2023.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one housing violation and $712 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 of 404 West 51st Street, PincusCo has identified the owners of 15 of the 36 commercial properties representing 118,579 square feet of the 310,447 square feet. The largest owner is Jay Wartski, followed by Croman Real Estate and then Ed Adler.
There are no active new building construction projects on this tax block.

The majority, or 80 percent of the 310,447 square feet of built space are walkup buildings, with office buildings next occupying 9 percent of the space.

The buyer

The PincusCo database currently indicates that Kings Capital owned at least eight commercial properties with 89 residential units in New York City with 85,211 square feet and a city-determined market value of $31.5 million. (Market value is typically about 50% of actual value.) The portfolio has $55.7 million in debt, with top three lenders as Webster Bank, Derby Copeland Capital, and Maxim Credit Group respectively. Within the portfolio, the bulk, or 44 percent of the 85,211 square feet of built space are walkup properties, with elevator properties next occupying 42 percent of the space. The bulk, or 68 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.

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