Sabet Group pays $7M for 24-unit walkup in East Village

Sabet Group through the entity 110 E 1 Street LLC paid $7 million to the entity Arthur EIS 2022 LLC for the 24-unit residential walkup building (C1) at 110 East 1st Street in East Village, Manhattan.
The deal closed on October 27, 2023 and was recorded on October 30, 2023. The property has 15,540 square feet of built space and 8,380 square feet of additional air rights for a total buildable of 23,911 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $450 and the price per buildable square foot is $292 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 signatories for the seller were Eileen Wohlgelernter, Debbi Sreter, and Jacob Eis. The signatory for Sabet Group was Alfred Sabetfard.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Sabet Group purchased five properties in four transactions for a total of $47 million and has no record it sold any properties over the past 24 months.
The seller Eileen Wohlgelernter 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 Leonard Eis, head officer and Juan Gonzalez, site manager. The business entity is Eisbro Realty Company Llc. The 15,540-square-foot property generated revenue of $491,933 or $32 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 24 residential units in East Village has 15,540 square feet of built space and 8,380 square feet of additional air rights for a total buildable of 23,911 square feet according to a PincusCo analysis of city data. The parcel has frontage of 37 feet and is 105 feet deep with a total lot size of 3,972 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 $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 17 housing violations and $3,980 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 15 of the 27 commercial properties representing 280,961 square feet of the 365,670 square feet. The largest owner is Son Dinh Tran, followed by Sai Man Yau and then Pasquale Debenedictis.
On the tax block, there were two new building construction projects totaling 32,083 square feet. The largest is a 22-unit, 19,325 square-foot residential (R-2) building submitted by Sergey Rybak with plans filed May 24, 2018 and permitted August 30, 2019. The second largest is a seven-unit, 12,758 square-foot residential (R-2) building submitted by Cynthia Wu with plans filed October 31, 2014 and permitted February 27, 2018.

The majority, or 43 percent of the 365,670 square feet of built space are walkup buildings, with elevator buildings next occupying 41 percent of the space.

The buyer

The PincusCo database currently indicates that Sabet Group owned at least 36 commercial properties with 575 residential units in New York City with 556,250 square feet and a city-determined market value of $164.2 million. (Market value is typically about 50% of actual value.) The portfolio has $366.5 million in debt, with top three lenders as Signature Bank, Citibank, and Dime Community Bank respectively. Within the portfolio, the bulk, or 59 percent of the 556,250 square feet of built space are walkup properties, with hotel properties next occupying 24 percent of the space. They are all located in Manhattan.

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