Leopold Kaufman pays $13.5M for dev site in East Harlem with plans for 101-unit building

Major multifamily landlord Leopold Kaufman through the entity Third Ave Ny Realty LLC paid $13.5 million to Nuchem Obstfeld through the development site at 1984-1990 Third Avenue in East Harlem, Manhattan.
On the lot, there was one new building construction project for a 101-unit, 76,790 square-foot R-2 building. The project was submitted by Joe Nebenzahl with plans filed June 24, 2021 and it has not been permitted yet. The purchase price comes to about $176 per buildable square foot.
The deal closed on December 16, 2022 and was recorded on December 22, 2022.
The signatory for Nuchem Obstfeld was Nuchem Obstfeld. The signatory for Leopold Kaufman was Leopold Kaufman.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Leopold Kaufman had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Nuchem Obstfeld purchased four properties in four transactions for a total of $25.8 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Gay Cropper, head officer and Llyod Cropper, officer. The business entity is Group Ten Inc. The 14,700-square-foot property generated revenue of $311,493 or $21 per square foot, according to the most recent income and expense figures.

The property

The 1984-1990 Third Avenue parcel has frontage of 60 feet and is 95 feet deep with a total lot size of 5,785 square feet. The zoning is R9 which allows for up to 7.52 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $948,000.

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 received $9,900 in ECB penalties and $7,500 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of eight of the 21 commercial properties representing 379,472 square feet of the 457,139 square feet. The largest owner is Vincent Garrow, followed by New York City Housing Authority and then L+M Development Partners.
On the tax block, there was one new building construction project filed totaling 76,790 square feet. It is a 101-unit, 76,790-square-foot R-2 building developed by Joe Nebenzahl with plans filed June 24, 2021 and permitted June 1, 2022.

The majority, or 77 percent of the 457,139 square feet of built space are elevator buildings, with walkup buildings next occupying 13 percent of the space.

The seller

The PincusCo database currently indicates that Nuchem Obstfeld owned at least five commercial properties in New York City with 133,322 square feet and a city-determined market value of $12.9 million. (Market value is typically about 50% of actual value.) The portfolio has $15.5 million in debt, borrowed from Signature Bank and New York Community Bank. Within the portfolio, the bulk, or 70 percent of the 133,322 square feet of built space are walkup properties, with elevator properties next occupying 30 percent of the space. The bulk, or 50 percent of the built space, is in Brooklyn, with Bronx next at 41 percent of the space.

The buyer

The PincusCo database currently indicates that Leopold Kaufman owned at least 53 commercial properties in New York City with 324,745 square feet and a city-determined market value of $56.8 million. (Market value is typically about 50% of actual value.) The portfolio has $107.6 million in debt, with top three lenders as Popular Bank, New York Community Bank, and Amalgamated Bank respectively. Within the portfolio, the bulk, or 79 percent of the 324,745 square feet of built space are walkup properties, with elevator properties next occupying 10 percent of the space. The bulk, or 94 percent of the built space, is in Brooklyn, with Queens next at 6 percent of the space.

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