Moishe Herman pays $5M to Atlantis Development for 20-unit walkup in Morrisania

Moishe Herman through the entity 596 E 170 St LLC paid $5 million to Atlantis Development through the entity East 170th Street Properties LLC for the 20-unit residential walkup building (C1) at 596 East 170th Street in Morrisania, Bronx. The expected use is cash flowing.
The deal closed on July 16, 2024 and was recorded on August 6, 2024. The property has 13,080 square feet of built space and 3,739 square feet of additional air rights for a total buildable of 16,827 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $382 and the price per buildable square foot is $297 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 Atlantis Development was Robert Lumaj. The signatory for Moishe Herman was Moishe Herman. The contract date was March 13, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Moishe Herman had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Atlantis Development purchased one properties in one transaction for a total of $2.5 million and sold two properties in two transactions for a total of $10.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Robert Lumaj, head officer and Kel Lumaj, shareholder. The business entity is East 170th Street Properties Llc.

The property

The residential walkup building with 20 residential units in Morrisania has 13,080 square feet of built space and 3,739 square feet of additional air rights for a total buildable of 16,827 square feet according to a PincusCo analysis of city data. The parcel has frontage of 56 feet and is 119 feet deep with a total lot size of 6,925 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.3 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 seven housing violations and one housing litigation in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 26, 2016. 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 six of the 31 commercial properties representing 180,860 square feet of the 437,082 square feet. The largest owner is Arker Companies, followed by Felicita Pena and then New York City Housing Authority.
On the tax block, there was one new building construction project filed totaling 101,539 square feet. It is a 152-unit, 101,539 square-foot residential (R-2) building submitted by Cornelia Narovici and filed by Cornelia Narovici with plans filed April 23, 2024 and it has not been permitted yet.

The majority, or 56 percent of the 437,082 square feet of built space are elevator buildings, with walkup buildings next occupying 35 percent of the space.

The seller

The PincusCo database currently indicates that Atlantis Development owned at least five commercial properties with 93 residential units in New York City with 0.0 square feet and a city-determined market value of $1.3 million. (Market value is typically about 50% of actual value.) The portfolio has $38.7 million in debt, borrowed from UBS and Northeast Community Bank. Within the portfolio, the bulk, or 0 percent of the 0.0 square feet of built space are development properties, with V0 properties next occupying 0 percent of the space.

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