Rockledge pays $11.3M for 66-unit walkup in Harlem

Rockledge through the entity Rockledge 401 Edgecombe LLC paid $11.3 million to Peter Takiff and partners through the entity 401 Edgecombe Partners LLC for the 66-unit residential walkup building (C1) at 401 Edgecombe Avenue in Harlem, Manhattan.
The deal closed on May 18, 2023 and was recorded on May 30, 2023. The property has 53,815 square feet of built space and 36,450 square feet of additional air rights for a total buildable of 90,300 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $210 and the price per buildable square foot is $125 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 Peter Takiff and partners was Peter Takiff. The signatory for Rockledge was David Kaye. According to the brokers, “It sold for a cap rate of 5.91%, at a GRM of 8.58 times the current rent roll, or $311 per sq. feet.” Aaron Jungreis, Ben Khakshoor and Alex Fuchs of Rosewood Realty Group represented the buyer Rockledge CRE and Brian Ezratty from Newmark represented the seller, Peter Takiff.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Rockledge purchased one other property for $10.4 million and has no record it sold any properties over the past 24 months.
The seller Peter Takiff 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 Peter Takiff, head officer and Ahmet Lecaj, site manager. The business entities are R.E.M. Residential and 401 Edgecombe Partners, LLC. The 53,815-square-foot property generated revenue of $1.3 million or $24 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 66 residential units in Harlem has 53,815 square feet of built space and 36,450 square feet of additional air rights for a total buildable of 90,300 square feet according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 100 feet deep with a total lot size of 15,000 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Hamilton Heights / Sugar Hill Northeast Historic District. The city-designated market value for the property in 2022 is $6.3 million. The most recent loan totaled $8.8 million and was provided by M&T Bank on March 20, 2020.

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 22 housing violations and $400 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 19 of the 25 commercial properties representing 504,882 square feet of the 631,705 square feet. The largest owner is Trion Real Estate Management, followed by Shimon Greisman and then Sentinel Real Estate.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 631,705 square feet of built space are walkup buildings, with elevator buildings next occupying 46 percent of the space.

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