RYCO Capital pays $19.1M for 31-unit rental in East Village

RYCO Capital through the entity West Lake 135-139 Avenue A LLC paid $19.1 million to the entity Herrick 137 LLC for the 31-unit residential elevator building (D9) at 135 Avenue A in East Village, Manhattan.
The deal closed on December 20, 2023 and was recorded on January 16, 2024. The property has 27,266 square feet of built space and 8,977 square feet of additional air rights for a total buildable of 36,272 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $700 and the price per buildable square foot is $526 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 Herrick and Norma Herrick was Peter Herrick and Norma Herrick. The signatory for RYCO Capital was James D. Ryan III. The contract date was September 18, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer RYCO Capital purchased four properties in three transactions for a total of $30.3 million including 414-416 West Broadway in Soho and 801 and 803 Greenwich Street in the West Village, and has no record it sold any properties over the past 24 months.
The seller Peter Herrick had not purchased any other properties and sold three properties in two transactions for a total of $27.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Peter Herrick, head officer and Stella Wojczal, site manager. The business entity is Herrick 137 Llc.

The property

The residential elevator building with 31 residential units in East Village has 27,266 square feet of built space and 8,977 square feet of additional air rights for a total buildable of 36,272 square feet according to a PincusCo analysis of city data. The parcel has frontage of 80 feet and is 113 feet deep with a total lot size of 9,068 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.9 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 one housing violation and $2,415 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 22 of the 34 commercial properties representing 290,105 square feet of the 372,750 square feet. The largest owner is Viking Management, followed by S.W. Management and then Peter Herrick.
There are no active new building construction projects on this tax block.

The majority, or 77 percent of the 372,750 square feet of built space are walkup buildings, with elevator buildings next occupying 14 percent of the space.

The seller

The PincusCo database currently indicates that Peter Herrick owned at least two commercial properties with 41 residential units in New York City with 33,566 square feet and a city-determined market value of $10.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 81 percent of the 33,566 square feet of built space are elevator properties, with walkup properties next occupying 19 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that RYCO Capital owned at least two commercial properties with nine residential units in New York City with 17,376 square feet and a city-determined market value of $13.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 66 percent of the 17,376 square feet of built space are mixed-use properties, with walkup properties next occupying 34 percent of the space. They are all located in Manhattan.

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