Nathan Benelyahou pays $42.8M to Dalan Real Estate for 2 adjacent UWS rentals

Nathan Benelyahou through the entity 226 Capital LLC paid $42.8 million to Dalan Real Estate through the entity Ed 97 Owner, LLC for the 31-unit residential elevator building (D7) at 2568 Broadway and the adjacent 34-unit residential elevator building (D3) at 226 West 97th Street on the Upper West Side, Manhattan.

To finance the purchase, Nathan Benelyahou assumed a $30.2 million loan given by Bank of America.
The deal closed on May 31, 2024 and was recorded on June 25, 2024. The two properties have 79,575 square feet of built space and 52,747 square feet of additional air rights for a total buildable of 132,343 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $537 and the price per buildable square foot is $323 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 Dalan Real Estate was Andrew Wrublin. The signatory for Nathan Benelyahou was Nathan Benelyahou. The contract date was December 5, 2023. The buyer is in care of a company called NJB Management Corp.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Nathan Benelyahou purchased one property for $9.5 million and has no record he sold any properties over the past 24 months.
The former owners according to the Department of Housing Preservation and Development includes Andrew Wrublin, head officer and Daniel Wrublin, agent. The business entities are Dalan Management and Ed 97 Owner, Llc. Out of the two properties, one with a total of 79,575 square feet of built space generated revenue of $2.4 million per year.

The property

The residential elevator building with 31 residential units in Upper West Side has 79,575 square feet of built space and 52,747 square feet of additional air rights for a total buildable of 132,343 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,091 square feet. The lot is irregular. The zoning is C4-6A which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $14.4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received five DOB violations, seven housing violations, and $4,005 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 the tax block of 2568 Broadway, PincusCo has identified the owners of five of the six commercial properties representing 250,062 square feet of the 303,367 square feet. The largest owner is Othon Mourkakos, followed by Fortune Society and then Dalan Real Estate.
There are no active new building construction projects on this tax block.

The majority, or 88 percent of the 303,367 square feet of built space are elevator buildings, with hotel buildings next occupying 9 percent of the space.

The seller

The PincusCo database currently indicates that Dalan Real Estate owned at least 44 commercial properties with 1,361,997 square feet, 1,376 residential units and a city-determined market value of $360.2 million. (Market value is typically about 50% of actual value.) The portfolio has $162.8 million in debt, with top three lenders as Popular Bank, Mesa West Capital, and New York Community Bank respectively. Within the portfolio, the bulk, or 70 percent of the 1,361,997 square feet of built space are elevator properties, with walkup properties next occupying 19 percent of the space. The bulk, or 56 percent of the built space, is in Manhattan, with Brooklyn next at 44 percent of the space.

The buyer

The PincusCo database currently indicates that Nathan Benelyahou owned at least three commercial properties with 30 residential units in New York City with 31,843 square feet and a city-determined market value of $11.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Manhattan.

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