Ryan Pedram of KP Developers pays $3.7M to Children’s Storefront for three properties in East Harlem

Ryan Pedram of KP Developers through the entity Adar 555 LLC paid $3.7 million to The Children’s Storefront for the 10-unit residential walkup building (C9) at 59 East 129th Street in East Harlem, Manhattan, four-unit specialty building (W4) at 57 East 129th Street in East Harlem, Manhattan, and nine-unit specialty building (Y4) at 61 East 129th Street in East Harlem, Manhattan.
The deal closed on August 12, 2022 and was recorded on August 22, 2022. The three properties have 8,280 square feet of built space and 9,710 square feet of additional air rights for a total buildable of 17,982 square feet according to PincusCo analysis of city data. The sale price per built square foot is $446 and the price per buildable square foot is $205 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 Children’s Storefront was Robert T. Rylee III. The signatory for Ryan Pedram and KP Developers was Behnam Kahen.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 59 East 129th Street.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Ryan Pedram purchased three properties in two transactions for a total of $8.2 million and has no record it sold any properties over the past 24 months.
The seller Children’s Storefront 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 Daphne Martinez, head officer. The business entity is The Children’s Storefront.

The property

The 59 East 129th Street parcel has frontage of 20 feet and is 99 feet deep with a total lot size of 1,998 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $363,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $600 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 the tax block of 59 East 129th Street, PincusCo has identified the owners of four of the 23 commercial properties representing 51,646 square feet of the 115,543 square feet. The largest owner is New York City Department of Housing Preservation and Development, followed by Omek Capital and then Alfred Ohebshalom.
There are two active new building construction projects totaling 21,904 square feet. The largest is a 17,917-square-foot E building developed by Karl Geiger with plans filed April 24, 2013 and it has not been permitted yet. The second largest is a seven-unit, 3,987-square-foot R-2 building developed by Rona Reodica with plans filed May 7, 2020 and it has not been permitted yet.

The majority, or 37 percent of the 115,543 square feet of built space are elevator buildings, with walkup buildings next occupying 33 percent of the space.

The buyer

The PincusCo database currently indicates that KP Developers owned at least 15 commercial properties in New York City with 110,630 square feet and a city-determined market value of $21.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 39 percent of the 110,630 square feet of built space are elevator properties, with walkup properties next occupying 25 percent of the space. The bulk, or 42 percent of the built space, is in Manhattan, with Brooklyn next at 39 percent of the space.
The PincusCo database currently indicates that Ryan Pedram owned at least four commercial properties in New York City with 72,954 square feet and a city-determined market value of $22.1 million. (Market value is typically about 50% of actual value.) The portfolio has $22.5 million in debt, borrowed from JPMorgan Chase. Within the portfolio, the bulk, or 68 percent of the 72,954 square feet of built space are rental condo properties, with office properties next occupying 12 percent of the space. They are all located in Manhattan.

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