Levy Group pays $18.6M to Slate Property Group for rental in Lenox Hill

Levy Group through the entity 1286 First Ave LLC paid $18.6 million to Slate Property Group through the entity SPG 1st Avenue Investors LLC for 52-unit rental condo at 1286 1st Avenue in Lenox Hill, Manhattan.
The deal closed on May 19, 2022 and was recorded on June 2, 2022. The property has 32,402 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $575 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 April 14, 2016, for $18 million. The signatory for Slate Property Group was Martin Nussbaum. The signatory for Levy Group was Lior Levy. This is for commercial condo unit RES.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Levy Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Slate Property Group purchased seven properties in six transactions for a total of $236.9 million and sold one properties in one transactions for a total of $8.4 million over the same time period.

The property

The 1286 1st Avenue parcel has a total lot size of 32,402 square feet. The city-designated market value for the property in 2022 is $7.7 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 block

On this tax block, PincusCo has identified the owners of three of the 11 commercial properties representing 37,916 square feet of the 1,004,687 square feet. The two identified owners are Slate Property Group and Jonis Realty. There are no active new building construction projects on this tax block.

The majority, or 49 percent of the 719,546 square feet of built space are specialty buildings, with hotel buildings next occupying 47 percent of the space.

The seller

The PincusCo database currently indicates that Slate Property Group owned at least 54 commercial properties with 1,819,909 square feet and a city-determined market value of $445.2 million. (Market value is typically about 50% of actual value.) The portfolio has $955.9 million in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and Heitman LLC respectively. Within the portfolio, the bulk, or 65 percent of the 1,819,909 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. The bulk, or 56 percent of the built space, is in Manhattan, with Brooklyn next at 31 percent of the space.

Surrounding

Within a 400-foot radius of 1286 1st Avenue, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
One of those four items was a sale which Isidoros Sfikas bought the 28,160-square-foot, 64-unit rental (C4) on 326 East 70th Street for $14.8 million from Vintage Group on May 13, 2022.
Of those four items, three were loans above $5 million totaling $19.7 million. The most recent of the three was David Massey which borrowed $7.2 million from CitiBank secured by the 7,375-square-foot, nine-unit rental (C7) on 1267 1st Avenue and two other properties on May 20, 2022.

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