Park Avenue South Management pays $8.3M to East Coast Holdings for 42-unit walkup in Washington Heights

Park Avenue South Management through the entity 830 W. 177th St. LLC paid $8.3 million to East Coast Holdings through the entity 830 West 177th LLC for the midblock 42-unit residential walkup building at 830 West 177th Street in Washington Heights, Manhattan.
The deal closed on May 25, 2022 and was recorded on June 21, 2022. The property has 35,200 square feet of built space and 17,904 square feet of additional air rights for a total buildable of 53,096 square feet according to PincusCo analysis of city data. The sale price per built square foot is $235 and the price per buildable square foot is $156 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 October 22, 2012, for $4.3 million. The signatory for East Coast Holdings was Mark Mehlman. The signatory for Park Avenue South Management was Richard Herman. Mark Mehlman is the founder and president of East Coast Holdings.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Park Avenue South Management purchased four properties in four transactions for a total of $21.2 million and has no record it sold any properties over the past 24 months.
The seller East Coast Holdings had not purchased any other properties and sold two properties in two transactions for a total of $6.5 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Mark Mehlman, head officer and 830 West 177th 830 West 177th Llc, individual owner. The business entity is 830 West 177th Llc. The 35,200-square-foot property generated revenue of $697,492 or $20 per square foot, according to the most recent income and expense figures.

The property

The 830 West 177th Street parcel has frontage of 98 feet and is 90 feet deep with a total lot size of 8,820 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.3 million. The most recent loan totaled $6 million and was provided by Greystone & Co. on October 31, 2019.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received 20 housing violations, $650 in OATH penalties, and two housing litigations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Washington Heights, the bulk, or 49 percent of the 78 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 23 percent of the space. In sales, Washington Heights has 1.3 times the average sales volume among other neighborhoods with $366.7 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, Washington Heights has near average amount of major developments among other neighborhoods and is the 19th highest in Manhattan. It had 1 million 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 31 of the 56 commercial properties representing 4,042,186 square feet of the 6,450,420 square feet. The largest owner is Columbia University, followed by A&E Real Estate Holdings and then Sugar Hill Capital Partners. There are no active new building construction projects on this tax block.

The majority, or 68 percent of the 6.8 million square feet of built space are specialty buildings, with residential elevator buildings next occupying 21 percent of the space.

The seller

The PincusCo database currently indicates that East Coast Holdings owned at least 20 commercial properties with 383,971 square feet and a city-determined market value of $36.6 million. (Market value is typically about 50% of actual value.) The portfolio has $28.6 million in debt, with top three lenders as Peapack-Gladstone Bank, BNB Bank, and PIMCO respectively. Within the portfolio, the bulk, or 57 percent of the 383,971 square feet of built space are walkup properties, with elevator properties next occupying 39 percent of the space. The bulk, or 39 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.

The buyer

The PincusCo database currently indicates that Park Avenue South Management owned at least four commercial properties with 132,595 square feet and a city-determined market value of $5.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 72 percent of the 132,595 square feet of built space are walkup properties, with elevator properties next occupying 28 percent of the space. The bulk, or 72 percent of the built space, is in Bronx, with Manhattan next at 28 percent of the space.

Surrounding

Within a 400-foot radius of 830 West 177th Street, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
One of those three items was a sale which Alma Realty bought the 67,740-square-foot, 37-unit rental (D1) on 353 Ft Washington Avenue for $6.6 million from Joseph Lewner on January 5, 2022.
Of those three items, two were loans above $5 million totaling $546.2 million. The most recent of the two was A&E Real Estate Holdings which borrowed $529.5 million from JPMorgan Chase secured by the 18,700-square-foot, 49-unit rental (D1) on 227 Haven Avenue and 42 other properties on July 20, 2021.

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