Legion Investment pays $21.1M to Kamran Hakim, adding to Carnegie Hill assemblage

Legion Investment Group through the entity Madison Ave Owner LLC paid $21.1 million to Kamran Hakim through the entity 26 East 84th Street, LLC for the midblock eight-unit residential walkup building at 26 East 84th Street in Carnegie Hill, Manhattan. Legion controls four parcels near the corner of Madison Avenue and East 84th Street, but according to city property records does not control the corner parcel 1128 Madison Avenue, owned by members of the Basch family.

The deal closed on April 21, 2022 and was recorded on May 10, 2022. The property has 4,400 square feet of built space and 6,963 square feet of additional air rights for a total buildable of 11,360 square feet according to PincusCo analysis of city data. The sale price per built square foot is $4,800 and the price per buildable square foot is $1,859 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 Kamran Hakim was Kamran Hakim. The signatory for Legion Investment Group was Victor Sigoura. Victor Sigoura is the founder and CEO of Legion Investment Group.

Legion Investment Group through the entity Madison Ave Owner LLC as borrower signed a refi loan with lender Deutsche Bank valued at $54.5 million for four properties including the midblock eight-unit residential walkup building at 26 East 84th Street in Carnegie Hill, Manhattan, midblock retail building at 24 East 84th Street in Carnegie Hill, Manhattan, and midblock retail building at 1122 Madison Avenue in Carnegie Hill, Manhattan.
The deal closed on April 21, 2022 and was recorded on May 10, 2022. The prior lender was Deutsche Bank which held debt that had an original loan amount of $18 million.The four properties have 15,588 square feet of built space and 37,839 square feet of additional air rights for a total buildable of 53,420 square feet according to PincusCo analysis of city data. The loan price per built square foot is $3,496 and the price per buildable square foot is $1,020 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.)

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Legion Investment Group purchased one property in one transaction for a total of $3.8 million and has no record it sold any properties over the past 24 months.
The seller Kamran Hakim 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 Ely Samuels, head officer and Kamran Hakim, officer. The business entity is 26 East 84th Street, Llc.

The property

The 26 E 84th Street parcel has frontage of 16 feet and is 67 feet deep with a total lot size of 1,136 square feet. The zoning is C5-1 which allows for up to 4 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 $3.4 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 Carnegie Hill, the majority, or 76 percent of the 38.3 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 9 percent of the space. In sales, Carnegie Hill has 3 times the average sales volume among other neighborhoods with $817.3 million in sales volume in the last two years and is the 14th highest in Manhattan. For development, Carnegie Hill has had very little major development activity relative to other neighborhoods.It had 709,333 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the 21 commercial properties representing 2,588 square feet of the 372,665 square feet. The identified owner is Legion Investment Group. There are no active new building construction projects on this tax block.

The majority, or 61 percent of the 940,033 square feet of built space are residential elevator buildings, with specialty buildings next occupying 33 percent of the space.

The buyer

The PincusCo database currently indicates that Legion Investment Group owned at least three commercial properties with 12,485 square feet and a city-determined market value of $6.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 79 percent of the 12,485 square feet of built space are residential walkup properties, with mixed-use properties next occupying 21 percent of the space. The bulk, or 79 percent of the built space, is in Brooklyn, with Manhattan next at 21 percent of the space.

Surrounding

Within a 400-foot radius of 26 E 84th Street, Pincusco identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, one was for major renovation including a certificate of occupancy change. It was a permit issued on November 23, 2021 for the $13.9 million renovation of 41,135-square-foot R-2 building with 31 residential units at 1109 Madison Avenue.
Of those four items, two were sales above $5 million totaling $30 million. The most recent of the two was Aaron Kapito and Alyssa Kapito which bought the 66,983-square-foot, 13-unit co-op (D4) on 1020 5th Avenue for $13.5 million from Gregory B. Abbott on March 1, 2022.
One of those four items was a loan which Elyacher Properties borrowed $26 million from Principal Life Insurance Company secured by the 106,947-square-foot, 112-unit rental (D6) on 1094 Madison Avenue on July 16, 2021.

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