Rosemark Management pays $4.8M for mixed-use in Midtown East

Rosemark Management through the entity 977 Second Ave Investors LLC paid $4.8 million to Roy Israel through the entity 977 Second Avenue LLC for the three-unit mixed-use building (S3) at 977 Second Avenue in Midtown East, Manhattan.
The deal closed on October 1, 2024 and was recorded on October 15, 2024. The property has 4,460 square feet of built space and 9,534 square feet of additional air rights for a total buildable of 14,000 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,076 and the price per buildable square foot is $342 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 May 6, 2021, for $3.9 million. The signatory for Roy Israel was Roy Israel. The signatory for Rosemark Management was Charles Rosenberg. The contract date was August 30, 2024. According to the website: “Rosemark Management, Inc. is the investment management and acquisition vehicle for the Arthur G. Cohen Family Office.”

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Rosemark Management had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Roy Israel had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Alan Clancy, head officer. The business entity is 977 2nd Ave Realty Corp.

The property

The mixed-use building with 3 residential units in Midtown East has 4,460 square feet of built space and 9,534 square feet of additional air rights for a total buildable of 14,000 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 70 feet deep with a total lot size of 1,400 square feet. The zoning is C1-9 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.2 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 $480 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 neighborhood

In Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 5th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Midtown East is the 2nd most active neighborhood among other neighborhoods. It had 16.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 26 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 20 commercial properties representing 436,523 square feet of the 544,341 square feet. The largest owner is Rudin Management, followed by KSL Capital Partners and then Gatsby Enterprises.
There are no active new building construction projects on this tax block.

The majority, or 60 percent of the 544,341 square feet of built space are office buildings, with hotel buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Roy Israel owned at least one commercial property with three residential units in New York City with 4,460 square feet and a city-determined market value of $3.2 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single mixed-use property. It is located in Manhattan.

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