RYCO Capital signs $17M loan with Derby Copeland for 31-unit rental in East Village

RYCO Capital through the entity West Lake 135-139 Avenue LLC as borrower signed an acquisition loan with lender Derby Copeland Capital through the entity Cf Dcope Fin LLC valued at $17 million 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 February 7, 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 loan price per built square foot is $623 and the price per buildable square foot is $468 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.)
RYCO Capital bought the property on the same day, December 20, 2023, for $19.1 million. The signatory for RYCO Capital was James D. Ryan III.

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 $2,390 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 RYCO Capital.
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 borrower

The PincusCo database currently indicates that Ryco Capital owned at least three commercial properties with 40 residential units in New York City with 44,642 square feet and a city-determined market value of $20.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 61 percent of the 44,642 square feet of built space are elevator properties, with mixed-use properties next occupying 26 percent of the space. They are all located in Manhattan.

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