Peak Capital Advisors pays $7.1M for 17-unit walkup in Chelsea

Peak Capital Advisors through the entity 212 8th Owner LLC paid $7.1 million to Corey Sherman through the entity Ens/21 LLC for the 17-unit residential walkup building (C7) at 212 8th Avenue in Chelsea, Manhattan. The expected use is cash flowing. Peak Capital Advisors is one of the most active buyers in the city.
The deal closed on September 27, 2024 and was recorded on October 3, 2024. The property has 9,891 square feet of built space and 1,007 square feet of additional air rights for a total buildable of 10,892 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $717 and the price per buildable square foot is $651 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 May 18, 2011, for $5.4 million. The signatory for Corey Sherman was Corey Sherman. The signatory for Peak Capital Advisors was Alex Rabin. The contract date was January 23, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Peak Capital Advisors purchased 17 properties in 17 transactions for a total of $80.9 million and sold one property in one transaction for a total of $16.5 million over the past 24 months.
The seller Corey Sherman had not purchased any other properties and sold one properties in one transaction for a total of $2.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Marc Sherman, head officer and Michael Mintz, officer. The business entities are Md Squared Property Group and Ens 21 Llc.

The property

The residential walkup building with 17 residential units in Chelsea has 9,891 square feet of built space and 1,007 square feet of additional air rights for a total buildable of 10,892 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 108 feet deep with a total lot size of 2,723 square feet. The zoning is C1-6A which allows for up to 2 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.5 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 $1,975 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 16 of the 39 commercial properties representing 140,938 square feet of the 339,702 square feet. The largest owner is Targo Capital Partners, followed by Florence Goldsmith and then Felix Bernardo.
There are no active new building construction projects on this tax block.

The majority, or 63 percent of the 339,702 square feet of built space are walkup buildings, with elevator buildings next occupying 18 percent of the space.

The buyer

The PincusCo database currently indicates that Peak Capital Advisors owned at least 48 commercial properties with 447 residential units in New York City with 396,688 square feet and a city-determined market value of $122.5 million. (Market value is typically about 50% of actual value.) The portfolio has $127.9 million in debt, with top three lenders as Amalgamated Bank, Prime Finance, and Prime Finance Partners respectively. Within the portfolio, the bulk, or 79 percent of the 396,688 square feet of built space are walkup properties, with mixed-use properties next occupying 13 percent of the space. The bulk, or 42 percent of the built space, is in Brooklyn, with Queens next at 30 percent of the space.