Lender gets 16-unit Carnegie Hill rental by foreclosure, sold for $15.8M in 2017

The entity Rss Wfcm2018-C44-Ny Lod with servicer Rialto Capital Advisors acquired through a judicial foreclosure from the former owners Prime Rok Real Estate and Daniel Rahmani, the 16-unit residential elevator building (D7) at 1442 Lexington Avenue in Carnegie Hill, Manhattan. The expected use is cash flowing. The city transfer price was $19.2 million. The total judgment was $19.65 million and the estimated market value at the time of the sale was $8.8 million, according to filings from the foreclosure case.
The deal closed on January 6, 2025 and was recorded on February 25, 2025. The property has 15,596 square feet of built space and 7,455 square feet of additional air rights for a total buildable of 23,058 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,231 and the price per buildable square foot is $832 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 seller bought the property on January 18, 2017, for $15.8 million. The signatory for Prime Rok Real Estate and Daniel Rahmani was Ian V. Lagowitz. The signatory for Rss Wfcm2018-C44-Ny Lod and Rialto Capital Advisors was Keith Brandofino. The contract date was December 2, 2024. The lender took back the property with a transfer price of $19.2 million. The prior loan was $11,600,000 from 2018 originated by Ladder Capital then securitized. Foreclosure case 1:21-cv-04424-VSB

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Rss Wfcm2018-C44-Ny Lod had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Prime Rok Real Estate had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Afshin Hedvat, head officer. The business entity is 1442 Lexington Operating De Llc. The 15,596-square-foot property generated revenue of $682,798 or $44 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 16 residential units in Carnegie Hill has 15,596 square feet of built space and 7,455 square feet of additional air rights for a total buildable of 23,058 square feet according to a PincusCo analysis of city data. The parcel has frontage of 34 feet and is 75 feet deep with a total lot size of 2,562 square feet. The zoning is C1-8X which allows for up to 2 times floor area ratio (FAR) for commercial and up to 9 times FAR for residential with inclusionary housing. The property is in the Expanded Carnegie Hill Historic District. The city-designated market value for the property in 2022 is $4.4 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 property for the past 24 months. In addition, according to city public data, the property has received two DOB violations, three housing violations, and $680 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 this tax block, PincusCo has identified the owners of seven of the 15 commercial properties representing 69,499 square feet of the 135,844 square feet. The largest owner is Ross And Ross Llc, followed by Muss Development and then Behrooz Hedvat.
There are no active new building construction projects on this tax block.

The majority, or 77 percent of the 135,844 square feet of built space are walkup buildings, with elevator buildings next occupying 11 percent of the space.

The seller

The PincusCo database currently indicates that Prime Rok Real Estate owned at least three commercial properties with 24 residential units in New York City with 16,335 square feet and a city-determined market value of $4.3 million. (Market value is typically about 50% of actual value.) The portfolio has $11.3 million in debt, with top three lenders as Sterling National Bank, SilverRock Development Company, and Toorak Capital Partners respectively. Within the portfolio, the bulk, or 100 percent of the 16,335 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Rialto Capital Advisors owned at least one commercial property in New York City with 67,130 square feet and a city-determined market value of $23 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single hotel property. It is located in Manhattan.

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