Lockhill Properties pays $5.2M for 5-unit mixed-use in East Village

Lockhill Properties through the entity 108 1st Ave Owner LLC paid $5.2 million to Lesia Lozowy through the entity 108 1st LLC for the five-unit mixed-use building (S5) at 108 First Avenue in East Village, Manhattan.
The deal closed on October 6, 2022 and was recorded on October 14, 2022. The property has 5,535 square feet of built space and 416 square feet of additional air rights for a total buildable of 5,952 square feet according to PincusCo analysis of city data. The sale price per built square foot is $939 and the price per buildable square foot is $873 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 Lesia Lozowy was Lesia Lozowy. The signatory for Lockhill Properties was Parke Leatherman.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Lockhill Properties purchased two properties in two transactions for a total of $14.7 million and has no record it sold any properties over the past 24 months.
The seller Lesia Lozowy had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Lesia Lozowy, head officer. The business entity is 108 1st Avenue Llc. The 5,535-square-foot property generated revenue of $243,319 or $44 per square foot, according to the most recent income and expense figures.

The property

The 108 First Avenue parcel has frontage of 21 feet and is 70 feet deep with a total lot size of 1,488 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.5 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 received $50 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 $5 million on this tax lot.

The neighborhood

In East Village, the bulk, or 44 percent of the 15.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 20 percent of the space. In sales, East Village has 2.2 times the average sales volume among other neighborhoods with $748.2 million in sales volume in the last two years and is the 21st highest in Manhattan. For development, East Village has had very little major development activity relative to other neighborhoods.It had 258,403 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 14 of the 49 commercial properties representing 121,364 square feet of the 344,733 square feet. The largest owner is Riaz Badrudin Valani, followed by Debrah Lee Charatan and then Conway Capital.
There are no active new building construction projects on this tax block.

The majority, or 58 percent of the 333,561 square feet of built space are walkup buildings, with mixed-use buildings next occupying 21 percent of the space.

The buyer

The PincusCo database currently indicates that prior to this purchase, Lockhill Properties owned at least two commercial properties in New York City.

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