Lockhill Properties pays $10.8M 2 walkups in Alphabet City

Lockhill Properties through the entity 175-177 East 3rd St Owner LLC paid $10.8 million to Kokot Realty Enterprises through the entity 175-177 East Third Associates, L.P. for the eight-unit residential walkup building (C4) at 175 East 3rd Street in Alphabet City, Manhattan and 10-unit residential walkup building (C4) at 177 East 3rd Street in Alphabet City, Manhattan.
The deal closed on June 20, 2023 and was recorded on June 27, 2023. The two properties have 13,461 square feet of built space and 5,566 square feet of additional air rights for a total buildable of 19,032 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $802 and the price per buildable square foot is $567 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 Kokot Realty Enterprises was Arthur Kokot. The signatory for Lockhill Properties was Parke Leatherman.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 175 East 3rd Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Lockhill Properties purchased three properties in three transactions for a total of $19.9 million and sold two properties in one transactions for a total of $5.8 million over the past 24 months.
The seller Kokot Realty Enterprises had not purchased any other properties and sold seven properties in six transactions for a total of $44 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Arthur Kokot, head officer and Patrick Gilroy, site manager. The business entity is 175-177 East Third Associates Lp. The two properties with a total of 13,461 square feet of built space generated revenue of $586,370 per year or $44 per square foot. The sale price per square foot was $802.

The property

The residential walkup building with 8 residential units in Alphabet City has 13,461 square feet of built space and 5,566 square feet of additional air rights for a total buildable of 19,032 square feet according to a PincusCo analysis of city data. The parcel has frontage of 24 feet and is 96 feet deep with a total lot size of 2,379 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.2 million. The most recent loan totaled $5 million and was provided by First Republic Bank on August 9, 2019.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have 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 block

On the tax block of 175 East 3rd Street, PincusCo has identified the owners of 10 of the 20 commercial properties representing 142,735 square feet of the 307,520 square feet. The largest owner is Weinstein Realty Group, followed by Thomas Gambetta and then Roman Catholic Church.
There are no active new building construction projects on this tax block.

The majority, or 61 percent of the 307,520 square feet of built space are walkup buildings, with elevator buildings next occupying 21 percent of the space.

The seller

The PincusCo database currently indicates that Kokot Realty Enterprises owned at least seven commercial properties with 109 residential units in New York City with 102,090 square feet and a city-determined market value of $24.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 50 percent of the 102,090 square feet of built space are elevator properties, with walkup properties next occupying 50 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Lockhill Properties owned at least two commercial properties with 15 residential units in New York City with 12,520 square feet and a city-determined market value of $7.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 56 percent of the 12,520 square feet of built space are walkup properties, with mixed-use properties next occupying 44 percent of the space. They are all located in Manhattan.

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