Sabet Group pays $3.1M to Mount Sinai for 6-unit walkup in Gramercy
Sabet Group through the entity 329 E 17 Street LLC paid $3.1 million to Mount Sinai through the entity Beth Israel Medical Center for the six-unit residential walkup building (C5) at 329 East 17th Street in Gramercy, Manhattan.
The deal closed on May 22, 2024 and was recorded on May 30, 2024. The property has 5,128 square feet of built space and 7,689 square feet of additional air rights for a total buildable of 12,822 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $604 and the price per buildable square foot is $241 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 Mount Sinai was Stephen Harvey. The signatory for Sabet Group was Alfred Sabetfard. The contract date was March 28, 2024.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Sabet Group purchased nine properties in seven transactions for a total of $70.8 million and has no record it sold any properties over the past 24 months.
The seller Mount Sinai had not purchased any other properties and sold one property in one transaction for a total of $2.3 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Thomas Ahn, head officer and Fay Robertson, officer. The business entities are Rose Associates, Inc. and Beth Israel Medical Center.
The property
The residential walkup building with six residential units in Gramercy has 5,128 square feet of built space and 7,689 square feet of additional air rights for a total buildable of 12,822 square feet according to a PincusCo analysis of city data. The parcel has frontage of 23 feet and is 92 feet deep with a total lot size of 2,130 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.3 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 $150 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 eight of the 14 commercial properties representing 403,686 square feet of the 505,155 square feet. The largest owner is New York University Langone, followed by Minrav Development and then Croman Real Estate.
On the tax block, there were three new building construction projects totaling 135,201 square feet. The largest is a 40-unit, 55,340 square-foot residential (R-2) building submitted by CIM Group and filed by David Wellspring with plans filed September 7, 2018 and it has not been permitted yet. The second largest is a 50-unit, 55,321 square-foot residential (R-2) building submitted by Minrav Development and filed by Yehuda Mor with plans filed February 10, 2021 and it has not been permitted yet.
The majority, or 83 percent of the 505,155 square feet of built space are specialty buildings, with walkup buildings next occupying 17 percent of the space.
The seller
The PincusCo database currently indicates that Mount Sinai owned at least two commercial properties in New York City with 3,319,505 square feet and a city-determined market value of $1.3 billion. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are specialty properties. They are all located in Manhattan.
The buyer
The PincusCo database currently indicates that Sabet Group owned at least 43 commercial properties with 710 residential units in New York City with 649,465 square feet and a city-determined market value of $192.9 million. (Market value is typically about 50% of actual value.) The portfolio has $414.8 million in debt, with top three lenders as Signature Bank, Greystone & Co., and Citibank respectively. Within the portfolio, the bulk, or 60 percent of the 649,465 square feet of built space are walkup properties, with hotel properties next occupying 21 percent of the space. They are all located in Manhattan.
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