Namdar, Klosed pay $5.2M for 22-unit walkup in Lower East Side

Namdar Realty Group and Klosed Properties through the entity 176 Rivington Bh LLC paid $5.2 million to Paul Chen and Janney Chen through the entity PJJC Realty LLC for the 22-unit residential walkup building (C7) at 176 Rivington Street in Lower East Side, Manhattan. The expected use is cash flowing.
The deal closed on August 6, 2024 and was recorded on August 14, 2024. The property has 9,915 square feet of built space and 74 square feet of additional air rights for a total buildable of 9,996 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $524 and the price per buildable square foot is $520 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 Paul Chen and Janney Chen was Janney Chen. The signatory for Namdar Realty Group and Klosed Properties was Steven Kashanian. The contract date was January 10, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Namdar Realty Group purchased 11 properties in 10 transactions for a total of $316.8 million and has no record it sold any properties over the past 24 months.
The seller Paul Chen had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Paul Chen, head officer and Janney Chen, officer. The business entity is PJJC Realty Llc.

The property

The residential walkup building with 22 residential units in Lower East Side has 9,915 square feet of built space and 74 square feet of additional air rights for a total buildable of 9,996 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.6 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 $600 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 block

On this tax block, PincusCo has identified the owners of 17 of the 33 commercial properties representing 246,729 square feet of the 460,491 square feet. The largest owner is Croman Real Estate, followed by Four Winds Real Estate and then Asian Americans For Equality.
On the tax block, there were two new building construction projects totaling 55,744 square feet. The largest is a 37-unit, 39,704 square-foot residential (R-2) building submitted by Icon Realty Management and filed by Terrence Lowenberg with plans filed April 9, 2014 and permitted January 13, 2016. The second largest is a 12-unit, 16,040 square-foot residential (R-2) building submitted by Matthew Levine|Robert Zecher and filed by Michael Bauer with plans filed July 2, 2019 and permitted November 18, 2020.

The majority, or 49 percent of the 460,491 square feet of built space are walkup buildings, with elevator buildings next occupying 33 percent of the space.

The buyer

The PincusCo database currently indicates that Namdar Realty Group owned at least 77 commercial properties with 944 residential units in New York City with 1,852,284 square feet and a city-determined market value of $368 million. (Market value is typically about 50% of actual value.) The portfolio has $150.6 million in debt, with top three lenders as Benefit Street Partners, Signature Bank, and Ladder Capital respectively. Within the portfolio, the bulk, or 35 percent of the 1,852,284 square feet of built space are office properties, with walkup properties next occupying 23 percent of the space. The bulk, or 72 percent of the built space, is in Manhattan, with Bronx next at 16 percent of the space.
The PincusCo database currently indicates that Klosed Properties owned at least 64 commercial properties with 841 residential units in New York City with 1,003,013 square feet and a city-determined market value of $142.2 million. (Market value is typically about 50% of actual value.) The portfolio has $5.4 million in debt, borrowed from New York Community Bank. Within the portfolio, the bulk, or 37 percent of the 1,003,013 square feet of built space are walkup properties, with elevator properties next occupying 35 percent of the space. The bulk, or 51 percent of the built space, is in Manhattan, with Bronx next at 28 percent of the space.

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