Sabet Group pays $11M for two rentals in East Village

Sabet Group paid a total of $11 million to Leonard Eis for adjacent buildings at 60 Second Avenue and 58 Second Avenue in the East Village, Manhattan, in two separate transactions.

In the larger transaction, Sabet Group through the entity 60-62 Second Ave LLC paid $6.5 million to Leonard Eis through the entity 60 Second Avenue Corporation for the 24-unit residential elevator building (D9) at 60-62 2nd Avenue in East Village, Manhattan.
The deal closed on May 6, 2024 and was recorded on May 9, 2024. The property has 23,634 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $275 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 Leonard Eis was Leonard Eis. The signatory for Sabet Group was Alfred Sabetfard. The contract date was February 22, 2024.

In the other transaction, Sabet Group through the entity 58 Second Ave LLC paid $4.5 million to Leonard Eis through the entity 58-Second Avenue Properties, LLC for the three-unit mixed-use building (S3) at 58 2nd Avenue in East Village, Manhattan. The deal closed on May 6, 2024 and was recorded on May 9, 2024. The property has 4,725 square feet of built space and 3,673 square feet of additional air rights for a total buildable of 8,396 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $952 and the price per buildable square foot is $535 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 Leonard Eis was Leonard Eis. The signatory for Sabet Group was Alfred Sabetfard. The contract date was February 22, 2024.

To finance the purchase, Sabet Group borrowed $7.15 million from Citizens Bank.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Sabet Group purchased six properties in four transactions for a total of $54.8 million and has no record it sold any properties over the past 24 months.
The seller Leonard Eis had not purchased any other properties and sold five properties in three transactions for a total of $20 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Leonard Eis, head officer and Roddy Rodriguez, site manager. The business entities are Eis Realty Co LLC and 60-Second Avenue Corp.

The property

The residential elevator building with 24 residential units in East Village according to a PincusCo analysis of city data. The parcel has frontage of 41 feet and is 125 feet deep with a total lot size of 4,934 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the East Village / Lower East Side Historic District. The city-designated market value for the property in 2022 is $2.4 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 DOB violation, $310 in ECB penalties, seven housing violations, and $790 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 28 of the 36 commercial properties representing 450,886 square feet of the 528,717 square feet. The largest owner is Yuco Management, followed by Yong Hong Guan and then Alistair Economakis.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 528,717 square feet of built space are walkup buildings, with elevator buildings next occupying 44 percent of the space.

The seller

The PincusCo database currently indicates that Leonard Eis owned at least two commercial properties with 42 residential units in New York City with 33,282 square feet and a city-determined market value of $3.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 71 percent of the 33,282 square feet of built space are elevator properties, with walkup properties next occupying 29 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Sabet Group owned at least 40 commercial properties with 675 residential units in New York City with 612,266 square feet and a city-determined market value of $180.8 million. (Market value is typically about 50% of actual value.) The portfolio has $407.7 million in debt, with top three lenders as Signature Bank, Greystone & Co., and Citibank respectively. Within the portfolio, the bulk, or 63 percent of the 612,266 square feet of built space are walkup properties, with hotel properties next occupying 22 percent of the space. They are all located in Manhattan.

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