Manouchehr Malekan pays $3.9M for retail in Chinatown

Manouchehr Malekan through the entity Chatham Mott LLC paid $3.9 million to Evelyn Falick through the entity Mott Operating Corp. for the midblock retail building at 5 Chatham Square in Chinatown, Manhattan.
The deal closed on May 20, 2022 and was recorded on June 9, 2022. The property has 10,550 square feet of built space and 3,744 square feet of additional air rights for a total buildable of 14,313 square feet according to PincusCo analysis of city data. The sale price per built square foot is $369 and the price per buildable square foot is $272 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 Evelyn Falick was Evelyn Falick. The signatory for Manouchehr Malekan was Manouchehr Malekan.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Manouchehr Malekan purchased seven properties in five transactions for a total of $25.3 million and has no record it sold any properties over the past 24 months.
The seller Evelyn Falick had not purchased any other properties and had not sold any properties over the same time period. The 10,550-square-foot property generated revenue of $434,071 or $41 per square foot, according to the most recent income and expense figures.

The property

The 5 Chatham Square parcel has frontage of 25 feet and is 135 feet deep with a total lot size of 4,161 square feet. The lot is irregular. The city-designated market value for the property in 2022 is $1.8 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 one DOB violation 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 Chinatown, the bulk, or 33 percent of the 9 million square feet of commercial built space are residential walkup buildings, with mixed-use buildings next occupying 16 percent of the space. In sales, Chinatown has had very little sales volume relative to other neighborhoods with $109.6 million in sales volume in the last two years. For development, Chinatown has had very little major development activity relative to other neighborhoods.It had 261,484 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the 105 commercial properties representing 8,255 square feet of the 429,994 square feet. The identified owner is William Ng. There are no active new building construction projects on this tax block.

The majority, or 30 percent of the 402,009 square feet of built space are office buildings, with residential walkup buildings next occupying 28 percent of the space.

The buyer

The PincusCo database currently indicates that Manouchehr Malekan owned at least seven commercial properties with 109,885 square feet and a city-determined market value of $14.8 million. (Market value is typically about 50% of actual value.) The portfolio has $9.6 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 63 percent of the 109,885 square feet of built space are elevator properties, with retail properties next occupying 13 percent of the space. The bulk, or 89 percent of the built space, is in Queens, with Manhattan next at 11 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 5 Chatham Square that occurred over the past 24 months.

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