The anonymously owned entity Mountain High (NY) LLC paid $14.2 million to Premier Equities through the entity Premier 119-121 2nd Avenue LLC for the retail condo at 45 East 7th Street in East Village, Manhattan.
The deal closed on July 21, 2023 and was recorded on August 11, 2023. The property has 5,886 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $2,420 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 28, 2021, for $6.1 million, but at the time took out a $9.5 million loan. The signatory for Premier Equities was Yaron Jacobi. The signatory for Mountain High (NY) LLC was attorney Steven H. Hagen. The contract date was May 17, 2023. This is the location of the deadly East Village gas explosion.
Prior sales and revenue
Prior to this transaction, PincusCo has no record that the buyer had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Premier Equities purchased four properties in three transactions for a total of $76.3 million and sold four properties in two transactions for a total of $68.2 million over the same time period.
The retail condo in East Village has 5,886 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 5,886 square feet. The city-designated market value for the property in 2022 is $2.4 million. The most recent loan totaled $9.5 million and was provided by A10 Capital on October 28, 2021.
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 not received any significant violations in the last year.
There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by AVENUE SECOND OWNER LLC to create 21 residential units and 1 commercial unit in a building at 45 East 7th Street in East Village, Manhattan, called 45 East 7th Street Condominium that has a $44.5 million sellout, according to an September 18, 2019 submission to the New York State Attorney General. The principal of the sponsor, AVENUE SECOND OWNER LLC, was Yaniv Shaky Cohen.
In East Village, The bulk, or 44 percent of the 15.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 20 percent of the space. In sales, East Village has 1.8 times the average sales volume among other neighborhoods with $660.4 million in sales volume in the last two years and is the 22nd highest in Manhattan. For development, East Village has had very little major development activity relative to other neighborhoods.It had 388,712 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.
On this tax block, PincusCo has identified the owners of 26 of the 38 commercial properties representing 275,305 square feet of the 392,379 square feet. The largest owner is Viking Management, followed by Timothy D. O’Reilly and then Benchmark Real Estate Group.
On the tax block, there was one new building construction project filed totaling 39,308 square feet. It is a 68-unit, 39,308 square-foot hotel/dormitory/shelter (R-1) building submitted by John Pappas with plans filed October 27, 2014 and it has not been permitted yet.
The majority, or 77 percent of the 392,379 square feet of built space are walkup buildings, with mixed-use buildings next occupying 12 percent of the space.
The PincusCo database currently indicates that Premier Equities owned at least nine commercial properties with 60 residential units in New York City with 121,590 square feet and a city-determined market value of $51.7 million. (Market value is typically about 50% of actual value.) The portfolio has $177 million in debt, with top three lenders as Signature Bank, Acadia Realty Trust, and Metropolitan Commercial Bank respectively. Within the portfolio, the bulk, or 40 percent of the 121,590 square feet of built space are hotel properties, with mixed-use properties next occupying 28 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Queens next at 20 percent of the space.
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