Nazarian Property Group pays $12M for 5 Greenwich Village walkups

Lionel Nazarian’s Nazarian Property Group paid $12 million to the Gopher Group LLC for five residential walkups in Greenwich Village in five separate transactions. Gopher Group, which is registered at a CPA in Long Island, bought the properties in 2019 for $11.2 million. Traded reported on the sale last week.

In the first transaction, Nazarian Property Group through the entity 14 Gay Street, LLC paid $2.4 million to Gopher Group through the entity Gopher Group LLC for midblock eight-unit residential walkup building at 14 Gay Street in Greenwich Village, Manhattan.
The deal closed on April 27, 2022 and was recorded on May 11, 2022.The property has 1,544 square feet of built space and 861 square feet of additional air rights for a total buildable of 2,405 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,570 and the price per buildable square foot is $1,008 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.)

In the second, Nazarian Property Group through the entity 18 Christopher Street, LLC paid $2.4 million to Gopher Group through the entity Gopher Group LLC for midblock four-unit mixed-use building at 18 Christopher Street in Greenwich Village, Manhattan. The deal closed on April 27, 2022 and was recorded on May 11, 2022.The property has 1,916 square feet of built space and 889 square feet of additional air rights for a total buildable of 2,806 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,265 and the price per buildable square foot is $864 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.)

In the third, Nazarian Property Group through the entity 16 Gay Street, LLC paid $2.4 million to Gopher Group through the entity Gopher Group LLC for midblock four-unit 1-4 family building at 16 Gay Street in Greenwich Village, Manhattan.
The deal closed on April 27, 2022 and was recorded on May 11, 2022.The property has 1,380 square feet of built space and 130 square feet of additional air rights for a total buildable of 1,511 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,757 and the price per buildable square foot is $1,604 per the PincusCo analysis.

In the fourth, Nazarian Property Group through the entity 20 Christopher Street, LLC paid $2.4 million to Gopher Group through the entity Gopher Group LLC for midblock four-unit mixed-use building at 20 Christopher Street in Greenwich Village, Manhattan.
The deal closed on April 27, 2022 and was recorded on May 11, 2022.The property has 1,554 square feet of built space and 1,463 square feet of additional air rights for a total buildable of 3,013 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,560 and the price per buildable square foot is $804 per the PincusCo analysis.

In the fifth, Nazarian Property Group through the entity 16 Christopher Street, LLC paid $2.3 million to Gopher Group through the entity Gopher Group LLC for midblock 13-unit residential walkup building at 18 Gay Street in Greenwich Village, Manhattan and midblock 13-unit residential walkup building at 16 Christopher Street in Greenwich Village, Manhattan.
The deal closed on April 27, 2022 and was recorded on May 11, 2022.The two properties have 4,567 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $503 per the PincusCo analysis.

The seller bought the property on July 24, 2019, for $9 million. The signatory for Gopher Group was Gary J. Strauss. The signatory for Nazarian Property Group was Lionel Nazarian.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Nazarian Property Group had purchased any other properties and sold one properties in one transactions for a total of $8.7 million over the past 24 months.
The seller Gopher Group 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 Avi Joshua, head officer and Greg Bari, agent. The business entities are Gopher Group Llc and Gopher Group Llc. The 1,544-square-foot property generated revenue of $106,968 or $69 per square foot, according to the most recent income and expense figures.

The neighborhood

In Greenwich Village, the bulk, or 35 percent of the 34 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Greenwich Village has the 10th highest sale turnover among other neighborhoods in the city with $1.3 billion in sales volume in the last two years. For development, Greenwich Village has had very little major development activity relative to other neighborhoods.It had 445,850 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 21 commercial properties representing 63,368 square feet of the 157,050 square feet. The largest owner is Nina Ohebshalom, followed by Walter & Samuels. There are no active new building construction projects on this tax block.

The majority, or 28 percent of the 174,043 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 22 percent of the space.

The buyer

The PincusCo database currently indicates that Nazarian Property Group owned at least two commercial properties with 13,272 square feet and a city-determined market value of $7.5 million. (Market value is typically about 50% of actual value.) The portfolio has $11.8 million in debt, borrowed from New York Community Bank. Within the portfolio, all identified are residential walkup properties. They are all located in Manhattan.

Surrounding

Within a 400-foot radius of 14 Gay Street, Pincusco identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on March 7, 2022 for the $437,000 renovation of 3,085-square-foot B building with zero residential units at 391 6th Avenue.
Of those nine items, four were sales above $5 million totaling $141.3 million. The most recent of the four was 147 Waverly 8, LLC which bought one condo unit in the 3,429-square-foot, 18-unit condo building (R4) on 147 Waverly Place for $12.1 million from Dominic Barton on March 14, 2022.
Of those nine items, four were loans above $5 million totaling $75.4 million. The most recent of the four was Carmine Limited which borrowed $43.5 million from Santander Bank secured by the 102,354-square-foot, 134-unit rental (D6) on 1 Christopher Street on April 4, 2022.

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