Movcap pays $27.5M to UBS fund for resi, retail in East Village, was $35M in 2020

UPDATED 5:20 a.m., November 19, 2024: Lawrence Movtaday’s Movcap through the entity St Marks Property Owner LLC paid $27.5 million to UBS Realty Investors through the entity 19-23 St. Marks Place Apartments Owner LLC for the mixed-use residential and retail building (K2) at 19-23 St Marks Place in East Village, Manhattan. The expected use is cash flowing.
The deal closed on November 8, 2024 and was recorded on November 15, 2024. The property has  41 residential units, 15,851 square feet of built space and 19,362 square feet of additional air rights for a total buildable of 35,204 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,734 and the price per buildable square foot is $781 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 April 23, 2020, for $35 million. The signatory for UBS Realty Investors was Nolan Henry. The signatory for Movcap was Lawrence Movtady. The contract date was June 5, 2024. UBS Realty Investors bought the property just as Covid lockdowns started. Movcap bought the property through two entities in a tenant-in-common structure with both registered at the Movcap address, and both with Lawrence Movtaday as signatory. St Marks Property Owner LLC owns 63% and St Marks TIC LLC owns 37%. No debt has been recorded.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Movcap purchased four properties in two transactions for a total of $19 million and has no record it sold any properties over the past 24 months.
The seller UBS Realty Investors had not purchased any other properties and sold six properties in six transactions for a total of $181.3 million over the same time period. The business entities are Grep Atlantic Llc and 19-23 St. Marks Place Apartment Owners Llc.

The property

The retail building in East Village has 15,851 square feet of built space and 19,362 square feet of additional air rights for a total buildable of 35,204 square feet according to a PincusCo analysis of city data. The parcel has frontage of 78 feet and is 112 feet deep with a total lot size of 8,801 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $8.2 million. The most recent loan totaled $34 million and was provided by UBS Realty Investors on April 23, 2020.

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 $1,700 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 East Village, The bulk, or 44 percent of the 15.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 20 percent of the space. In sales, East Village has 2.2 times the average sales volume among other neighborhoods with $562 million in sales volume in the last two years and is the 16th highest in Manhattan. For development, East Village has had very little major development activity relative to other neighborhoods.It had 520,210 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 16 of the 30 commercial properties representing 162,008 square feet of the 270,844 square feet. The largest owner is Gpg Properties, followed by Derby Copeland Capital and then Ubs Realty Investors.
On the tax block, there was one new building construction project filed totaling 29,089 square feet. It is a 29,089 square-foot business (B) building submitted by Mark Seigel with plans filed October 12, 2018 and permitted April 27, 2023.

The majority, or 56 percent of the 270,844 square feet of built space are walkup buildings, with mixed-use buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Ubs Realty Investors owned at least one commercial property in New York City with 15,851 square feet and a city-determined market value of $8.2 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single retail property. It is located in Manhattan.

The buyer

The PincusCo database currently indicates that Movcap owned at least eight commercial properties with 78 residential units in New York City with 71,483 square feet and a city-determined market value of $35.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 91 percent of the 71,483 square feet of built space are walkup properties, with mixed-use properties next occupying 9 percent of the space. They are all located in Manhattan.

UPDATED: added the building also has residential units.

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