Liberty One Group pays Maguire Capital $9.5M for storage in Yorkville

Liberty One Group, led by executives including Jojo Rabinowitz, through the entity 1587 Third Investors LLC paid Marvin Azrak’s Maguire Capital Group through the entity MPLC Lender LLC  $9.5 million for the storage building (E7) at 1587 Third Avenue in Yorkville, Manhattan. The prior owner was Daniel Ohebshalom’s Keystone Management. Ohebshalom lost the building to Maguire Capital in a foreclosure. Ohebshalom, also known as Dan Shalom, was jailed in March for not repairing hundreds of alleged housing violations in multifamily buildings. Liberty One Group owns homeless shelters and other types of properties.

The deal closed on August 20, 2024 and was recorded on August 30, 2024. The property has 15,750 square feet of built space and 11,738 square feet of additional air rights for a total buildable of 27,490 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $603 and the price per buildable square foot is $345 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 prior owner bought the property on September 28, 2017, for $11.1 million. This is an entity level sale, not a deed transfer. The transfer value in city records was $4.8 million but the actual sale was $9.5 million, according to a person familiar with the deal. The state tax amount is aligned with a sale price of $9.5 million. Maguire Capital bought the debt from Madison Realty Capital in October 2019. The original borrower was Daniel Ohebshalom of Keystone Management, who bought the building in September 2017 for $11.1 million, borrowing $4.8 million from Madison Realty Capital. Madison sold the loan in October 2019 to Maguire Capital Group. Maguire financed the note purchase with a participation loan from Lightstone Capital, an affiliate of David Lichtenstein’s Lightstone Group.

An Avison Young team including Brandon Polakoff, Noah Kossof, Ryan McGuirl and Kyle Sabath, brokered the sale. Marketing material has an asking price of $10 million. 1587 Third Avenue Avison Young Marketing pdf

Prior sales and revenue

The seller Maguire Capital Group purchased properties in five transactions for a total of $34.7 million and sold three properties in three transactions for a total of $12.3 million over the same time period.

The property

The industrial building in Yorkville has 15,750 square feet of built space and 11,738 square feet of additional air rights for a total buildable of 27,490 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 110 feet deep with a total lot size of 2,749 square feet. The zoning is C1-9 which allows for up to 2 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 $3.1 million.

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 $625 in ECB penalties and $625 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 neighborhood

In Yorkville, The majority, or 61 percent of the 26.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Yorkville has 1.8 times the average sales volume among other neighborhoods with $484.4 million in sales volume in the last two years and is the 18th highest in Manhattan. For development, Yorkville has near average amount of major developments among other neighborhoods and is the 27th highest in Manhattan. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 13 of the 24 commercial properties representing 155,861 square feet of the 264,955 square feet. The largest owner is S.W. Management, followed by Aya and then Moshe Khoshkheraman.
There are no active new building construction projects on this tax block.

The majority, or 81 percent of the 264,955 square feet of built space are walkup buildings, with elevator buildings next occupying 13 percent of the space.

The seller

The PincusCo database currently indicates that Maguire Capital Group owned at least seven commercial properties with 22 residential units in New York City with 25,455 square feet and a city-determined market value of $13.6 million. (Market value is typically about 50% of actual value.) The portfolio has $25.2 million in debt, borrowed from Lightstone Group and Maspeth Federal Savings and Loan Association. Within the portfolio, the bulk, or 42 percent of the 25,455 square feet of built space are mixed-use properties, with walkup properties next occupying 41 percent of the space. The bulk, or 58 percent of the built space, is in Brooklyn, with Manhattan next at 42 percent of the space.
The PincusCo database currently indicates that Keystone Management owned at least four commercial properties with 102 residential units in New York City with 116,970 square feet and a city-determined market value of $26.6 million. (Market value is typically about 50% of actual value.) The portfolio has $10 million in debt, borrowed from Flushing Bank. Within the portfolio, the bulk, or 75 percent of the 116,970 square feet of built space are elevator properties, with retail properties next occupying 17 percent of the space. The bulk, or 83 percent of the built space, is in Manhattan, with Queens next at 17 percent of the space.

Direct link to Acris document. link