Revere Capital acquires Stone Street’s foreclosed 8-unit rental in Flatiron with $26M judgment

Lender Revere Capital through the entity NYC 18th Street LLC acquired through a foreclosure action the eight-unit residential elevator building (D7) at 16 East 18th Street in Flatiron District, Manhattan. The prior owner, which lost the building in the process, was Stone Street Properties. The property has a final judgment of $25.9 million, according to court filings. The transfer in Acris was $3.7 million, but it was not immediately clear what that figure referred to.
The transfer closed on July 1, 2022 and was recorded on August 17, 2022. The property has 20,258 square feet of built space according to PincusCo analysis of city data.
The seller bought the property on September 25, 2015, for $21.2 million. The signatory for Stone Street Properties foreclosed entity was referee Allison Furman. The signatory for Revere Capital was Brigitte Harley. Revere Capital lent $23.5 million to Stone Street in 2018. Revere filed to foreclose and was awarded a foreclosure which was delayed because of Covid court restrictions. Revere took the property back, with a final judgment amount of $25.9 million. It is unclear what the $3.7 million represents, as the building is worth far more than that. Allison Furman is the court appointed referee.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Revere Capital had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Stone Street Properties foreclosed 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 Thomas Gagliano, head officer and Alex Abreu, officer. The business entity is 16e18 Stone Llc.

The property

The 16 East 18th Street parcel has frontage of 23 feet and is 94 feet deep with a total lot size of 2,570 square feet. The zoning is M1-5M which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $4.6 million.

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 two DOB violations and $780 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 $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of seven of the 36 commercial properties representing 287,524 square feet of the 908,371 square feet. The largest owner is Eretz Group, followed by Related Companies and then Bijan Nassi.
There is one active new building construction project totaling 38,263 square feet. It is a 38,263-square-foot B building developed by Ken Rosenblum with plans filed April 27, 2020 and it has not been permitted yet.

The majority, or 48 percent of the 869,907 square feet of built space are office buildings, with mixed-use buildings next occupying 35 percent of the space.

Direct link to Acris document. link