Kinsmen Property Group pays $10M to add again to East Village assemblage

Kinsmen Property Group through the entity 62-64 Third Ave. L.P. paid $10 million for the 12-unit residential walkup building (C7) at 50-52 Third Avenue in the East Village, Manhattan. The seller is a partnership in care of the Halegua family’s Jonis Realty with the corporate name 50 3rd Avenue Associates Limited Partnership.
This is the sixth building Kinsmen Property Group has purchased on the west side of Third Avenue between 10th and 11th Streets. The only building it does not now own is the 23-foot wide corner walkup at 10th Street, owned by Isfahany Realty Corp. The six building-assemblage has 167 feet of frontage along Third Avenue.
The deal closed on May 16, 2023 and was recorded on May 22, 2023. The property has 10,823 square feet of built space and 12,890 square feet of additional air rights for a total buildable of 23,730 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $923 and the price per buildable square foot is $420 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 Jonis Realty was Nathan Halegua. The signatory for Kinsmen Property Group was Ari Zagdanski. The contract date was May 19, 2022.

Just over one year ago, in January 2022, Kinsmen paid $10 million for the fifth part of the assemblage.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Kinsmen Property Group purchased three properties in three transactions for a total of $33.7 million and has no record it sold any properties over the past 24 months.
The seller Jonis Realty 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 Lukasz Stapor, head officer and Kenny Kronstadt, officer. The business entity is 50 3rd Avenue Associates L.P. The 10,823-square-foot property generated revenue of $830,321 or $77 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 12 residential units in East Village has 10,823 square feet of built space and 12,890 square feet of additional air rights for a total buildable of 23,730 square feet according to a PincusCo analysis of city data. The parcel has frontage of 39 feet and is 100 feet deep with a total lot size of 3,942 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.6 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 nine housing violations 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 nine of the 14 commercial properties representing 542,613 square feet of the 666,815 square feet. The largest owner is Rabina Properties, followed by New York University and then Mallory Management.
There are no active new building construction projects on this tax block.

The majority, or 43 percent of the 666,815 square feet of built space are hotel buildings, with elevator buildings next occupying 25 percent of the space.

The seller

The PincusCo database currently indicates that Jonis Realty owned at least six commercial properties with 192 residential units in New York City with 106,996 square feet and a city-determined market value of $43.4 million. (Market value is typically about 50% of actual value.) The portfolio has $50.5 million in debt, with top three lenders as Signature Bank, First Republic Bank, and First National Bank of Long Island respectively. Within the portfolio, the bulk, or 80 percent of the 106,996 square feet of built space are walkup properties, with elevator properties next occupying 20 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Kinsmen Property Group owned at least five commercial properties with 18 residential units in New York City with 32,039 square feet and a city-determined market value of $17.7 million. (Market value is typically about 50% of actual value.) The portfolio has $67.5 million in debt, borrowed from TD Bank. Within the portfolio, the bulk, or 71 percent of the 32,039 square feet of built space are mixed-use properties, with walkup properties next occupying 29 percent of the space. They are all located in Manhattan.
Kinsmen Property Group owns another assemblage on the Bowery which is ground-leased to the tenant Real Estate Equities Corp.

Direct link to Acris document. link