Mehrdad Kahan, Said Makhany pay $5M for retail in South Richmond Hill

Mehrdad Kahan and Said Makhany through the entities Sassan Assets LLC, Adventure Assets LLC paid $5 million to Samuel Frankel through the entity Nefesh Management Corp. for the retail building (K1) and parking lot at 109-07 101st Avenue in South Richmond Hill, Queens. The expected use is cash flowing.
The deal closed on September 10, 2024 and was recorded on September 13, 2024. The property has 10,822 square feet of built space and 31,464 square feet of additional air rights for a total buildable of 42,234 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $462 and the price per buildable square foot is $118 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 January 6, 2006, for $2.9 million. The signatory for Samuel Frankel was Samuel Frankel. The contract date was July 31, 2024. Samuel Frankel is president of the seller entity. Mehrdad Kahan and Said Makhany were members of entities that sold 245 Clarkson Avenue for $10.5 million to Alembic Community Development on August 2, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Mehrdad Kahan had purchased any other properties and sold one property in one transaction for a total of $10.5 million over the past 24 months.
The seller Samuel Frankel purchased three properties in three transactions for a total of $10.1 million and sold one property in one transaction for a total of $6.7 million over the same time period.

The property

The retail building in South Richmond Hill has 10,822 square feet of built space and 31,464 square feet of additional air rights for a total buildable of 42,234 square feet according to a PincusCo analysis of city data. The parcel has frontage of 211 feet and is 100 feet deep with a total lot size of 21,117 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.9 million.

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 $300 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 neighborhood

In South Richmond Hill, The bulk, or 49 percent of the 2.3 million square feet of commercial built space are mixed-use buildings, with walkup buildings next occupying 15 percent of the space. In sales, South Richmond Hill has the 28th highest sale turnover among other neighborhoods in Queens with $39.5 million in sales volume in the last two years. For development, South Richmond Hill has had very little major development activity relative to other neighborhoods.It had 70,426 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

There are no active new building construction projects on this tax block.

All properties are retail.

The seller

The PincusCo database currently indicates that Samuel Frankel owned at least three commercial properties in New York City with 16,937 square feet and a city-determined market value of $2.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are specialty properties. They are all located in Queens.

The buyer

The PincusCo database currently indicates that Mehrdad Kahan owned at least six commercial properties with 20 residential units in New York City with 50,413 square feet and a city-determined market value of $7.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 75 percent of the 50,413 square feet of built space are P9 properties, with walkup properties next occupying 25 percent of the space. The bulk, or 75 percent of the built space, is in Queens, with Brooklyn next at 25 percent of the space.
The PincusCo database currently indicates that Said Makhany owned at least two commercial properties with 14 residential units in New York City with 8,625 square feet and a city-determined market value of $1.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Brooklyn.

Direct link to Acris document. link