Madison Realty Capital sells 12-unit walkup in Hell’s Kitchen for $5M

The entity 753 Ninth Ave LLC with unknown ownership in care of the law firm Breuer Herskowitz paid $5 million to Madison Realty Capital through the entity 753 9th Ave Owner LLC for the 12-unit residential walkup building (C7) at 753 Ninth Avenue in Hell’s Kitchen, Manhattan. The expected use is cash flowing.
The deal closed on October 15, 2024 and was recorded on October 31, 2024. The property has 10,650 square feet of built space and 4,505 square feet of additional air rights for a total buildable of 15,152 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $469 and the price per buildable square foot is $329 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 March 1, 2021, for $6.4 million. The signatory for Madison Realty Capital was Urian Yap. The signatory for Breuer Herskowitz registered was The buyer is in care of Breuer Herskowitz, where Jason Herskowitz is a partner, and the buyer entity is also connected with Ishimbayev Law Firm, P.C. located at 1 World Trade Center, STE 8500. The contract date was March 27, 2024. The buyer is in care of Breuer Herskowitz, where Jason Herskowitz is a partner, and the buyer entity is also connected with Ishimbayev Law Firm, P.C. located at 1 World Trade Center, STE 8500

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Breuer Herskowitz registered purchased two properties in two transactions for a total of $85.5 million and has no record it sold any properties over the past 24 months.
The seller Madison Realty Capital purchased 14 properties in eight transactions for a total of $339.7 million and sold 13 properties in 11 transactions for a total of $218.6 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Julia Rodriguez, head officer and Vesa Naka, site manager. The business entity is 753 9th Ave Owner Llc.

The property

The residential walkup building with 12 residential units in Hell’s Kitchen has 10,650 square feet of built space and 4,505 square feet of additional air rights for a total buildable of 15,152 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,517 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.2 million. The property has 6 rent regulated units according to city tax records from 2023.

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 $350 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 block

On this tax block, PincusCo has identified the owners of 15 of the 36 commercial properties representing 118,579 square feet of the 310,447 square feet. The largest owner is Jay Wartski, followed by Croman Real Estate and then Ed Adler.
There are no active new building construction projects on this tax block.

The majority, or 80 percent of the 310,447 square feet of built space are walkup buildings, with office buildings next occupying 9 percent of the space.

The seller

The PincusCo database currently indicates that Madison Realty Capital owned at least 64 commercial properties with 2,969 residential units in New York City with 2,833,845 square feet and a city-determined market value of $393 million. (Market value is typically about 50% of actual value.) The portfolio has $1.5 billion in debt, with top three lenders as Signature Bank, MF1 Capital, and Elliott Investment Management respectively. Within the portfolio, the bulk, or 72 percent of the 2,833,845 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 41 percent of the built space, is in Queens, with Manhattan next at 33 percent of the space.

The buyer

The PincusCo database currently indicates that Breuer Herskowitz Registered owned at least two commercial properties with 16 residential units in New York City with 220,713 square feet and a city-determined market value of $48.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are hotel properties. They are all located in Manhattan.

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