Oleksandr Nad plans 18-unit project in Two Bridges in LES

Oleksandr Nad submitted a new building construction project for an 18-unit, 20,810 square-foot residential (R-2) building at 83 Madison Street in Two Bridges in the Lower East Side of Manhattan. The plan was filed with the New York City Department of Buildings on December 21, 2023 under job number M00979759. It calls for the construction of an eight-story building. The project is described in the filing as: proposed construction of eight-story, mixed-use building with 18 residential units and two community facility units. The architect is Kindo Holdings.
The plan calls for one residential unit on the second floor, three units on each of the floors three through seven, and two units on the eighth floor.

The property

The existing property in Two Bridges has 7,556 square feet of built space and 9,756 square feet of additional air rights for a total buildable of 17,299 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,029 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2 million.

Prior sales and revenue

This property was sold by Roman Catholic Church of St. Joachim for $5.2 million to Oleksandr Nad on November 21, 2023.

The neighborhood

In Two Bridges, The majority, or 61 percent of the 4.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 19 percent of the space. In sales, Two Bridges has near average sales volume among other neighborhoods with $292.1 million in sales volume in the last two years and is the 34th highest in Manhattan. For development, Two Bridges has near average amount of major developments among other neighborhoods and is the 43rd highest in Manhattan. It had 36,294 square feet of commercial and multi-family construction under development in the last two years, which represents 0.82 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 33 commercial properties representing 32,278 square feet of the 306,542 square feet. The largest owner is Asian Americans For Equality, followed by Jack S. Tom and then Kam Lan Realty Corp.. On the tax block, there was one new building construction project filed totaling 20,810 square feet. It is a 18-unit, 20,810 square-foot residential (R-2) building submitted by Oleksandr Nad and filed by Madison Street with plans filed December 21, 2023 and it has not been permitted yet.

The owner

The PincusCo database currently indicates that Oleksandr Nad owned at least four commercial properties with 65 residential units in New York City with 73,379 square feet and a city-determined market value of $8.7 million. (Market value is typically about 50% of actual value.) The portfolio has $30 million in debt, with top three lenders as Arbor Realty Trust, Emerald Creek Capital, and Industrial and Commercial Bank of China respectively. Within the portfolio, the bulk, or 90 percent of the 73,379 square feet of built space are elevator properties, with M1 properties next occupying 10 percent of the space. The bulk, or 90 percent of the built space, is in Brooklyn, with Manhattan next at 10 percent of the space.

The surrounding

Within a 400-foot radius of 85 Madison Street, PincusCo identified seven commercial real estate items of interests occurred over the past 24 months. Of those seven items, one was in new building development. It was a new building permit issued on March 31, 2022 for a 97,700-square-foot residential (R-2) building with 80 residential units at 59 Henry Street. Of those seven items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on June 1, 2022 for the $749,000 renovation of 2,800-square-foot mercantile (M) building with zero residential units at 20 Henry Street. Of those seven items, two were sales above $5 million totaling $29 million. The most recent of the two was Rivington Company which bought the 38,000-square-foot industrial (M3) on 5 Monroe Street and one other property for $14.5 million from Group RMC on December 26, 2023. Of those seven items, three were loans above $5 million totaling $138 million. The most recent of the three was Rivington Company in which borrowed $9.5 million from Rivington Company secured by the 38,000-square-foot industrial (M3) on 5 Monroe Street and one other property on December 26, 2023.

Direct link to the property’s ACRIS page and link to DOB NOW portal.