MKF Realty Hell’s Kitchen retail recapped at $13.75m

An affiliate of MKF Realty through the entity Property 46 East LLC bought a 31 percent stake in the MKF Realty retail building (K2) at 639 West 46th Street in Hell’s Kitchen, Manhattan, which valued the property at $13.75 million. The seller entity was 639 West 46 Street LLC. The specific identities of the buyers and sellers were not clear.

The sale closed on January 31, 2024 and was recorded on February 13, 2024. The property has 25,100 square feet of built space and 37,656 square feet of additional air rights for a total buildable of 62,760 square feet according to a PincusCo analysis of city data. The valuation price per built square foot is $547 and the price per buildable square foot is $219 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.)
MKF Realty is the New York City ownership entity for the RAGHSA company, a real estate investment company based in Buenos Aires, Argentina. MKF Realty bought the building in 2012 for $11 million, signed by Isaac Khafif.
In the most recent transaction, the signatory for the buyer entity was Adam Smith. The signatory for the seller entity was Jodi Ehrlich. This is an internal sale of a 31% stake. $112,865 was paid in city tax on $13.75 million, implying a 31% sale of the property.

The property

The retail building in Hell’s Kitchen has 25,100 square feet of built space and 37,656 square feet of additional air rights for a total buildable of 62,760 square feet according to a PincusCo analysis of city data. The parcel has frontage of 125 feet and is 100 feet deep with a total lot size of 12,552 square feet. The zoning is M2-4 which allows for up to 5 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $8.9 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 $8,080 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 17, 2014. 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 Hell’s Kitchen, The bulk, or 39 percent of the 40.6 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Hell’s Kitchen has 2.7 times the average sales volume among other neighborhoods with $803.2 million in sales volume in the last two years and is the 14th highest in Manhattan. For development, Hell’s Kitchen is the 7th most active neighborhood among other neighborhoods. It had 5.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 16 commercial properties representing 110,553 square feet of the 238,158 square feet. The largest owner is Semyon Ruvinsky, followed by Prince Lumber and then Insite Property Group.
On the tax block, there was one new building construction project filed totaling 107,130 square feet. It is a 107,130 square-foot storage (S-1) building submitted by InSite Property Group and filed by Elias Slaiby with plans filed October 31, 2022 and it has not been permitted yet.

The majority, or 47 percent of the 238,158 square feet of built space are industrial buildings, with retail buildings next occupying 22 percent of the space.

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