Leonid Bogomolniy, Oleksandr Nad pay $5.25M for church property in Two Bridges

Oleksandr Nad through the entity 83 Madison Holdings LLC paid $5.25 million to Roman Catholic Church of St. Joachim for the specialty building (M1) at 83-85 Madison Street in Two Bridges, Manhattan. PincusCo reported in July that developer Leonid Bogomolniy was the contract vendee for the property under the same purchase entity and contract date, according to a court filing.

Oleksander Nad is listed as the managing member of the entity 83 Madison Holdings LLC, while Leonid Bogomolniy is the managing partner.
The deal closed on November 21, 2023 and was recorded on December 6, 2023. The property has 7,556 square feet of built space and 9,756 square feet of additional air rights for a total buildable of 17,299 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $694 and the price per buildable square foot is $303 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 Roman Catholic Church and Church of St. Joachim was Rev. Roger Kwan. The signatory for Leonid Bogomolniy and Oleksandr Nad was Oleksandr Nad. The contract date was June 28, 2023.

According to the contract, the only brokerage firm was Cushman & Wakefield. The firm’s Michael DeCheser, Robert Burton and Michael Gembecki have a listing for the property, asking $7 million. 83_Madison_St-Setup

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Oleksandr Nad had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Roman Catholic Church purchased one properties in one transactions for a total of $1.5 million and sold 31 properties in 21 transactions for a total of $190.6 million over the same time period.

The property

The specialty building in Two Bridges has 7,556 square feet of built space and 9,756 square feet of additional air rights for a total buildable of 17,299 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,029 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $5.2 million judgment concerning a leave to sell filed on July 27, 2023, by Roman Catholic Church and Church of St. Joachim against Leonid Bogomolniy. 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 $1 million on this tax lot.

The neighborhood

In Two Bridges, The majority, or 61 percent of the 4.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 19 percent of the space. In sales, Two Bridges has had very little sales volume relative to other neighborhoods with $257.9 million in sales volume in the last two years. For development, Two Bridges has had very little major development activity relative to other neighborhoods.It had 15,484 square feet of commercial and multi-family construction under development in the last two years, which represents 0.35 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 33 commercial properties representing 32,278 square feet of the 306,542 square feet. The largest owner is Zi Kang Wu, followed by Kam Lan Realty Corp. and then Jack S. Tom.
There are no active new building construction projects on this tax block.

The majority, or 97 percent of the 306,542 square feet of built space are walkup buildings, with elevator buildings next occupying 3 percent of the space.

The seller

The PincusCo database currently indicates that Roman Catholic Church owned at least 146 commercial properties with 886 residential units in New York City with 4,220,236 square feet and a city-determined market value of $748.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 43 percent of the 4,220,236 square feet of built space are specialty properties, with M1 properties next occupying 23 percent of the space. The bulk, or 54 percent of the built space, is in Brooklyn, with Queens next at 26 percent of the space.

The buyer

The PincusCo database currently indicates that Oleksandr Nad owned at least three commercial properties with 65 residential units in New York City with 65,823 square feet and a city-determined market value of $6.7 million. (Market value is typically about 50% of actual value.) The portfolio has $30 million in debt, with top three lenders as Arbor Realty Trust, Emerald Creek Capital, and Industrial and Commercial Bank of China respectively. Within the portfolio, all identified are elevator properties. They are all located in Brooklyn.

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