L3C Capital pays $24.2M to Lemle family for three residential walkup buildings in East Village
L3C Capital Partners through the entity JLRE 13th Street LLC paid $24.2 million to J. Stuart Lemle, Russell Lemle, and L. Craig Lemle through the entity 5gl 13th Street, LLC, and others for the 14-unit residential walkup building at 337 East 13th Street in East Village, Manhattan, 15-unit residential walkup building at 335 East 13th Street in East Village, Manhattan, and 15-unit residential walkup building at 333 East 13th Street in East Village, Manhattan.
The deal closed on January 25, 2022 and was recorded on February 8, 2022.
The three properties have 32,190 square feet of built space and 2,895 square feet of additional air rights for a total buildable of 35,100 square feet according to PincusCo analysis of city data. The sale price per built square foot is $753 and the price per buildable square foot is $690 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 J. Stuart Lemle, Russell Lemle, and L. Craig Lemle was J. Stuart Lemle, Russle Lemle, and L. Craig Lemle. The signatory for L3C Capital Partners was Jonathan Leifer.
The three properties with a total of 32,190 square feet of built space generated revenue of $1.7 million per year or $52 per square foot. The sale price per square foot was $753.
Over the past five years, there have been 2 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 2 renovation/alteration projects (A2) applied for with a total estimated value of $483,895. One of the projects were to change the building from a RES to a R-2.
The Lemle family members each owned a 1/3 share in the buildings. Members of the family in 2014 divided a larger portfolio of J. Lemle & Sons into LC Lemle Real Estate Group led by Laura Lemle, and Copperwood Real Estate, led by her brother Robert Lemle, as The Real Deal reported at the time. Jonathan Leifer is the principal of L3C Capital Partners.
In East Village, the bulk, or 35 percent of the 19.3 million square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 27 percent of the space. In sales, East Village has 2.1 times the average sales volume among other neighborhoods with $593.6 million in sales volume in the last two years and is the 21st highest in Manhattan. For development, East Village has had very little major development activity relative to other neighborhoods.It had 152,634 square feet of commercial and multi-family construction under development in the last two years, which represents 0.79 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.
On the tax block, the majority, or 60 percent of the 377,388 square feet of built space are specialty buildings, with residential walkup buildings next occupying 26 percent of the space.
The owners according to the Department of Housing Preservation and Development includes Craig Lemle, head officer and Steve Brecker, officer. The business entities are Douglas Elliman Property Management and Lem Lee 13th Lp.
Within a 400-foot radius of 337 East 13th Street, PincusCo identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, three were sales above $5 million totaling $43.9 million. The most recent of the three was Madison Realty Capital which bought the 13,374-square-foot, 24-unit rental (C1) on 329 East 12th Street for $12.7 million from Raphael Toledano bankrupt entities on May 12, 2021.
Of those six items, three were loans above $5 million totaling $112.4 million. The most recent of the three was Madison Realty Capital which borrowed $70 million from Signature Bank secured by the 10,090-square-foot, 24-unit rental (C1) on 329 East 12th Street and 14 other properties on May 12, 2021.
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