Lockhill Properties pays $6.15M for 2 walkups in Kips Bay

UPDATED: Parke Leatherman’s Lockhill Properties paid Dean Marchi $6.15 million for adjacent walkup properties in Kips Bay, Manhattan, at 243 and 245 East 31st Street in two separate transactions.

In the larger, Lockhill Properties through the entity 245 East 31st Owner LLC paid $3.6 million to Dean Marchi through the entity Nina Estates, Inc. for the 18-unit walkup building (C5) at 245 East 31st Street in Kips Bay, Manhattan. The expected use is cash flowing.
The deal closed on September 17, 2024 and was recorded on September 19, 2024. The property has 3,824 square feet of built space and 2,093 square feet of additional air rights for a total buildable of 5,925 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $938 and the price per buildable square foot is $605 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.)

In the smaller, Lockhill Properties through the entity 243 E 31st Realty LLC paid $2.6 million to Dean Marchi through the entity Lorenzo Estates Inc. for the five-unit residential walkup building (C4) at 243 East 31st Street in Kips Bay, Manhattan. The expected use is cash flowing.
The deal closed on September 17, 2024 and was recorded on September 19, 2024. The property has 4,640 square feet of built space and 1,283 square feet of additional air rights for a total buildable of 5,925 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $552 and the price per buildable square foot is $432 per the PincusCo analysis.

The signatory for Dean Marchi was Dean Marchi. The signatory for Lockhill Properties was Parke Leatherman. The contract date was June 13, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Lockhill Properties purchased four properties in three transactions for a total of $21.9 million and sold two properties in one transaction for a total of $5.8 million over the past 24 months.
The seller Dean Marchi had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Mario Marchi, head officer and Robert Marchi, officer. The business entity is Nina Estates Inc.
The brokers on the deal were Kevin Esh, of Esh Property Group and Scott Dweck and Brandon Thomas of Latitude Property Group, according to the brokers.

The property

The residential walkup building with 18 residential units in Kips Bay has 3,824 square feet of built space and 2,093 square feet of additional air rights for a total buildable of 5,925 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 98 feet deep with a total lot size of 1,975 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $852,000. The property has 18 rent regulated units according to city tax records from 2021.

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 one housing litigation 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 this tax block, PincusCo has identified the owners of eight of the 29 commercial properties representing 44,804 square feet of the 195,569 square feet. The largest owner is Juan Vallarino Revoccable Trust, followed by Ignatius Cuttita and then Croman Real Estate.
There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 195,569 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 Lockhill Properties owned at least five commercial properties with 54 residential units in New York City with 35,901 square feet and a city-determined market value of $19.6 million. (Market value is typically about 50% of actual value.) The portfolio has $7.3 million in debt, borrowed from First Horizon Bank. Within the portfolio, the bulk, or 85 percent of the 35,901 square feet of built space are walkup properties, with mixed-use properties next occupying 15 percent of the space. They are all located in Manhattan.

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