Penn South Capital pays $3.4M for 15-unit walkup in East Village

Penn South Capital through the entity Vrh 430 E 13 LLC paid $3.4 million to Bernice Harris through the entity 430 East 13th LLC for the 15-unit residential walkup building (C1) at 430 East 13th Street in East Village, Manhattan.
The deal closed on April 18, 2024 and was recorded on April 23, 2024. The property has 6,364 square feet of built space and 3,655 square feet of additional air rights for a total buildable of 10,016 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $528 and the price per buildable square foot is $335 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 signatory for Bernice Harris was Allison Schifini. The signatory for Penn South Capital was Parag Sawhney. The contract date was March 25, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Penn South Capital purchased 14 properties in 13 transactions for a total of $74.9 million and sold two properties in two transactions for a total of $13 million over the past 24 months.
The seller Bernice Harris 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 Bernice Harris, head officer and Scot Hirschfield, agent. The business entities are General Property Management and 430 East 13th Llc.

The property

The residential walkup building with 15 residential units in East Village has 6,364 square feet of built space and 3,655 square feet of additional air rights for a total buildable of 10,016 square feet according to a PincusCo analysis of city data. The parcel has frontage of 24 feet and is 103 feet deep with a total lot size of 2,504 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 $2 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 one DOB violation, five housing violations, and $2,310 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 22 of the 34 commercial properties representing 299,808 square feet of the 392,139 square feet. The largest owner is Zdzislaw Czerny, followed by Tsukaki Co., Ltd. and then Kushner Companies.
There are no active new building construction projects on this tax block.

The majority, or 84 percent of the 392,139 square feet of built space are walkup buildings, with elevator buildings next occupying 9 percent of the space.

The buyer

The PincusCo database currently indicates that Penn South Capital owned at least 23 commercial properties with 189 residential units in New York City with 148,558 square feet and a city-determined market value of $74.3 million. (Market value is typically about 50% of actual value.) The portfolio has $92.3 million in debt, with top three lenders as KeyBank, Shelter Growth Capital Partners, and Midcap Financial respectively. Within the portfolio, the bulk, or 58 percent of the 148,558 square feet of built space are walkup properties, with mixed-use properties next occupying 12 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Brooklyn next at 20 percent of the space.

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