Ross Morgan pays $5.7M for mixed-use in Lower East Side

Ross James Morgan through the entity 187 East Broadway LLC paid $5.7 million to Helen Hong through the entity Wc&J Inc for the midblock three-unit mixed-use building at 187 East Broadway in the Lower East Side, Manhattan.
The deal closed on May 6, 2022 and was recorded on May 19, 2022. The property has 5,696 square feet of built space and 1,036 square feet of additional air rights for a total buildable of 6,728 square feet according to PincusCo analysis of city data. The sale price per built square foot is $997 and the price per buildable square foot is $844 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 property

The 187 East Broadway parcel has frontage of 26 feet and is 75 feet deep with a total lot size of 1,956 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.5 million. The signatory for the buyer was Ross James Morgan, and for the seller was Helen Hong.

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 not received any significant violations 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 neighborhood

In Lower East Side, the majority, or 60 percent of the 33.2 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 15 percent of the space. In sales, Lower East Side has 2.5 times the average sales volume among other neighborhoods with $677.8 million in sales volume in the last two years and is the 18th highest in Manhattan. For development, Lower East Side has 2.4 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Manhattan. It had 2.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 23 commercial properties representing 21,265 square feet of the 222,528 square feet. The two identified owners are David Mak and Jolanta M. Podbielska. There are no active new building construction projects on this tax block.

The majority, or 39 percent of the 133,033 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 34 percent of the space.

Surrounding

Within a 400-foot radius of 187 East Broadway, PincusCo identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, two were loans above $5 million totaling $20.1 million. The most recent of the two was Jeffery Jacobs and Therese Olivia which borrowed $10.9 million from Crown Bank secured by the 8,610-square-foot, seven-unit rental (D7) on 193 Henry Street on March 2, 2022.

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