Mixed-use on Canal Street in Little Italy sells for $6.5M

The entity 271 Canal LLC, which has an office at the same location as the Eshagh Moezinia Family Trust, paid $6.5 million to Bruce Fung through the entity Lay Fung Realty Corp. for the mixed-use building (K4) at 271 Canal Street in Little Italy, Manhattan. The expected use is cash flowing.
The deal closed on October 2, 2024 and was recorded on October 3, 2024. The property has 11,500 square feet of built space and 1,598 square feet of additional air rights for a total buildable of 13,100 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $561 and the price per buildable square foot is $492 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 Bruce Fung was Bruce Fung. The contract date was August 26, 2024. The buyer address is located at the address of Eshagh Moezinia Family Trust, with related parties Eshagh Moezinia and Michael Moezinia.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Eshagh Moezinia Family Trust had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Bruce Fung had not purchased any other properties and had not sold any properties over the same time period.

The property

The mixed-use building in Little Italy has 11,500 square feet of built space and 1,598 square feet of additional air rights for a total buildable of 13,100 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 107 feet deep with a total lot size of 2,620 square feet. The lot is irregular. The property is in the SoHo-Cast Iron Historic District Extension. The city-designated market value for the property in 2022 is $2.7 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 $250 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 Little Italy, The bulk, or 33 percent of the 4.1 million square feet of commercial built space are office buildings, with walkup buildings next occupying 25 percent of the space. In sales, Little Italy has near average sales volume among other neighborhoods with $263.2 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Little Italy has had very little major development activity relative to other neighborhoods.It had 223,517 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 17 commercial properties representing 249,951 square feet of the 437,802 square feet. The largest owner is Hcre Hung & Chong Real Estate, followed by Chetrit Group and then United American Land.
On the tax block, there were two new building construction projects totaling 191,280 square feet. The largest is a 100-unit, 96,427 square-foot residential (R-2) building submitted by United American Land and filed by Casey Martinez with plans filed February 9, 2023 and it has not been permitted yet. The second largest is a 105-unit, 94,853 square-foot residential (R-2) building submitted by Stellar Management and filed by Lyle Kamesaki with plans filed October 31, 2022 and it has not been permitted yet.

The majority, or 44 percent of the 437,802 square feet of built space are office buildings, with hotel buildings next occupying 28 percent of the space.