Peak Capital pays $12.5M for 40-unit walkup in East Village

Peak Capital Advisors through the entity 235 E 10th Owner LLC paid $12.5 million for the 40-unit residential walkup building (C1) at 235 East 10th Street in East Village, Manhattan. The expected use is cash flowing.
The deal closed on September 27, 2024 and was recorded on October 10, 2024. The property has 16,987 square feet of built space and 1,782 square feet of additional air rights for a total buildable of 18,760 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $735 and the price per buildable square foot is $666 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 signatories for the sellers were for Alan E. Rabunski, Harriet Rabunski Leventhal, and Tova Rabunski. The signatory for Peak Capital Advisors was Alex Rabin and David Gomez. The contract date was May 28, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Peak Capital Advisors purchased 19 properties in 19 transactions for a total of $93 million and sold one property in one transaction for a total of $16.5 million over the past 24 months.
The seller Alan E. Rabunski had not purchased any other properties and sold one property in one transaction for a total of $5 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Alan Rabunski, head officer and Harriet Leventhal, officer. The business entities are Queens Quality Mgmt and 233-5 Realty Llc. The 16,987-square-foot property generated revenue of $928,353 or $55 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 40 residential units in East Village has 16,987 square feet of built space and 1,782 square feet of additional air rights for a total buildable of 18,760 square feet according to a PincusCo analysis of city data. The parcel has frontage of 49 feet and is 94 feet deep with a total lot size of 4,690 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $5.3 million. The property has 9 rent regulated units according to city tax records from 2023.

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 $250 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 20 of the 37 commercial properties representing 308,685 square feet of the 480,153 square feet. The largest owner is BLDG Management, followed by Meadow Partners and then Kushner Companies.
There are no active new building construction projects on this tax block.

The majority, or 56 percent of the 480,153 square feet of built space are walkup buildings, with elevator buildings next occupying 31 percent of the space.

The buyer

The PincusCo database currently indicates that Peak Capital Advisors owned at least 50 commercial properties with 470 residential units in New York City with 412,963 square feet and a city-determined market value of $127.7 million. (Market value is typically about 50% of actual value.) The portfolio has $133.2 million in debt, with top three lenders as Amalgamated Bank, Prime Finance, and Derby Copeland Capital respectively. Within the portfolio, the bulk, or 79 percent of the 412,963 square feet of built space are walkup properties, with mixed-use properties next occupying 14 percent of the space. The bulk, or 42 percent of the built space, is in Brooklyn, with Manhattan next at 30 percent of the space.

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