Lalezarian pays $12.3M to BLDG for portion of Murray Hill 200-unit dev site

Lalezarian Properties paid $12.3 million to Lloyd Goldman’s BLDG Management for two Murray Hill buildings where Lalezarian filed plans last week for a 200-unit mixed-use building.

Lalezarian Properties paid $7.8 million for the midblock eight-unit residential walkup building at 569 Third Avenue and $4.5 million for the midblock eight-unit residential walkup building at 571 Third Avenue.

Both deals closed on May 31, 2022 and were recorded on June 21, 2022.

Lloyd Goldman was the signatory for BLDG Management, through the entity Bldg Oceanside LLC for both properties. Kevin Lalezarian was the signatory for Lalezarian Properties, through the entity 569 3rd Avenue LLC.

PincusCo first reported that Lalezarian Properties, on June 15, filed a permit application for the construction of a 200-unit, 194,727-square-foot mixed-use building at 567 3rd Avenue. The plans call for the construction of a 352-foot-tall, 34-story building at the site.

In May, New York YIMBY reported that Lalezarian’s 35-story residential tower nearby at 509 3rd Avenue was close to topping out. 

The 569 3rd Avenue property has 6,506 square feet of built space and 12,560 square feet of additional air rights for a total buildable of 19,060 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,191 and the price per buildable square foot is $406 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 571 3rd Avenue property has 5,913 square feet of built space and 12,559 square feet of additional air rights for a total buildable of 18,470 square feet according to PincusCo analysis of city data. The sale price per built square foot is $761 and the price per buildable square foot is $243 per the PincusCo analysis.

Prior sales and revenue

The former owners of both properties, according to the Department of Housing Preservation and Development includes Paul Howard, head officer and Rrok Bunjaj, officer. The business entity is Bldg Oceanside Llc.

The 6,506-square-foot property at 569 3rd Avenue generated revenue of $286,004 or $44 per square foot, according to the most recent income and expense figures.

The 5,913-square-foot property at 571 3rd Avenue generated revenue of $259,935 or $44 per square foot, according to the most recent income and expense figures.

The property

The 569 3rd Avenue parcel has frontage of 22 feet and is 126 feet deep with a total lot size of 1,906 square feet. The lot is irregular. 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 $3.6 million.

The 571 3rd Avenue parcel has frontage of 15 feet and is 84 feet deep with a total lot size of 1,847 square feet. The lot is irregular. 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 $3.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against either property since September of 2020. In addition, according to city public data, the 571 3rd Avenue property has received $50 in OATH penalties in the last year.

The neighborhood

In Murray Hill, the majority, or 66 percent of the 15.8 million square feet of commercial built space are residential elevator buildings, with office buildings next occupying 16 percent of the space. In sales, Murray Hill has had very little sales volume relative to other neighborhoods with $89.5 million in sales volume in the last two years. For development, Murray Hill has had very little major development activity relative to other neighborhoods.It had 95,534 square feet of commercial and multi-family construction under development in the last two years, which represents 0.60 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 38 commercial properties representing 165,356 square feet of the 597,748 square feet. The largest owner is Ion Mustatea, followed by Betty Mossanen and then BLDG Management. There is one active new building construction project totaling 154,219 square feet. It is a 200-unit, 154,219-square-foot R-2 building developed by Kevin Lalezarian with plans filed June 15, 2022 and it has not been permitted yet.

The majority, or 89 percent of the 360,288 square feet of built space are residential elevator buildings, with retail buildings next occupying 4 percent of the space.

Surrounding

Within a 400-foot radius of 569 3rd Avenue, Pincusco identified seven commercial real estate items of interests occurred over the past 24 months.

Of those seven items, one was in new building development. It was a new building permit application filed on June 15, 2022 for a 194,727-square-foot R-2 building with 200 residential units at 567 3rd Avenue.
Of those seven items, two were sales above $5 million totaling $31.6 million. The most recent of the two was Lalezarian Properties which bought the 9,300-square-foot, five-unit office building (O5) on 567 3rd Avenue for $6.8 million from Evans Cyprus on April 19, 2022.

Of those seven items, four were loans above $5 million totaling $114.5 million. The most recent of the four was Murray Hill Mews Owners Cooperative which borrowed $16.5 million from Berkadia Commercial Mortgage secured by the 329,706-square-foot, 272-unit co-op (D4) on 560 3rd Avenue on May 27, 2022.

Direct link to Acris document. link

Direct link to Acris document. link