Ryan Pedram pays $4.2M for 12-unit walkup in Hell’s Kitchen

Ryan Pedram through the entity KP Developers Inc. paid $4.2 million to Na Wei through the entity China National Aviation Holding Corp. Limited for the midblock 12-unit residential walkup building at 659 10th Avenue in Hell’s Kitchen, Manhattan.
The deal closed on June 7, 2022 and was recorded on June 17, 2022. The property has 6,850 square feet of built space and 8,257 square feet of additional air rights for a total buildable of 15,110 square feet according to PincusCo analysis of city data. The sale price per built square foot is $613 and the price per buildable square foot is $277 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 Na Wei was Na Wei. The signatory for Ryan Pedram was Ryan Pedram.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Ryan Pedram purchased two properties in one transactions for a total of $4 million and has no record it sold any properties over the past 24 months.
The seller Na Wei 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 Wei Na, head officer and Baohui Xia, officer. The business entity is Air China Limited. The 6,850-square-foot property generated revenue of $409,356 or $60 per square foot, according to the most recent income and expense figures.

The property

The 659 10th Avenue parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,510 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.2 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 $625 in ECB penalties and $625 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 neighborhood

In Hell’s Kitchen, the bulk, or 39 percent of the 45 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Hell’s Kitchen has 3.5 times the average sales volume among other neighborhoods with $972.1 million in sales volume in the last two years and is the 13th highest in Manhattan. For development, Hell’s Kitchen has 1.3 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Manhattan. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of five of the 29 commercial properties representing 586,408 square feet of the 730,644 square feet. The largest owner is Hakimian Organization, followed by Suresh Kumar Sachdev and then National Refrigerants. There are no active new building construction projects on this tax block.

The majority, or 71 percent of the 743,596 square feet of built space are office buildings, with residential walkup buildings next occupying 18 percent of the space.

The buyer

The PincusCo database currently indicates that Ryan Pedram owned at least 18 commercial properties with 192,734 square feet and a city-determined market value of $42 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 37 percent of the 192,734 square feet of built space are elevator properties, with rental condo properties next occupying 26 percent of the space. The bulk, or 73 percent of the built space, is in Manhattan, with Brooklyn next at 22 percent of the space.

Surrounding

Within a 400-foot radius of 659 10th Avenue, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on April 16, 2021 for the $310,600 renovation of 7,655-square-foot RES building with 15 residential units at 453 West 46th Street.
One of those three items was a sale which National Refrigerants bought the 12,500-square-foot, two-unit industrial (E9) on 529 West 46th Street for $16 million from Jonathan P. Kahn on July 27, 2021.
One of those three items was a loan which Khalilullah Sikander borrowed $9 million from TD Bank secured by the 38,343-square-foot, 20-unit rental (C4) on 503 West 47th Street and one other property on March 11, 2022.

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