Sky Management pays $11.8M to SMA Equities for 22-unit walkup in Lower East Side

Jonathan Ohebshalom’s Sky Management through the entity Gulch 3 LLC paid $11.8 million to SMA Equities through the entity 303 Brow De LLC for the 22-unit residential walkup building (C7) at 305 Broome Street in Lower East Side, Manhattan. The expected use is cash flowing.
The deal closed on September 24, 2024 and was recorded on September 30, 2024. The property has 18,055 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $654 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 seller bought the property on September 18, 2008, for $6.3 million. The signatory for SMA Equities was Sassan Mahfar. The signatory for Sky Management was Sheila Hyman. The contract date was August 16, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Sky Management purchased one property in one transaction for a total of $18.5 million and sold two properties in two transactions for a total of $64.8 million over the past 24 months.
The seller SMA Equities purchased one property in one transaction for a total of $36.8 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Tamer Mohamed, head officer and Sassan Mahfar, officer. The business entities are Sma Equities and Sm 303 Broome, Llc.

The property

The residential walkup building with 22 residential units in Lower East Side has 18,055 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 43 feet and is 87 feet deep with a total lot size of 3,835 square feet. The zoning is C4-4A which allows for up to 4 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $7.3 million. The most recent loan totaled $9.7 million and was provided by Societe Generale on November 3, 2023. The property has 5 rent regulated units according to city tax records from 2021.

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 eight housing violations and $800 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on May 12, 2014. 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 seven of the 22 commercial properties representing 81,240 square feet of the 213,223 square feet. The largest owner is Sma Equities, followed by Edmond Li and then Black Bear Asset Management.
On the tax block, there were two new building construction projects totaling 25,007 square feet. The largest is a 20-unit, 17,440 square-foot residential (R-2) building submitted by Marc Straus with plans filed September 7, 2017 and permitted December 17, 2021. The second largest is a four-unit, 7,567 square-foot residential (R-2) building submitted by Winnie Lee with plans filed January 14, 2020 and it has not been permitted yet.

The majority, or 71 percent of the 213,223 square feet of built space are walkup buildings, with mixed-use buildings next occupying 22 percent of the space.

The seller

The PincusCo database currently indicates that Sma Equities owned at least 15 commercial properties with 492 residential units in New York City with 483,215 square feet and a city-determined market value of $99.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 52 percent of the 483,215 square feet of built space are elevator properties, with D7 properties next occupying 23 percent of the space. The bulk, or 84 percent of the built space, is in Manhattan, with Queens next at 16 percent of the space.

The buyer

The PincusCo database currently indicates that Sky Management owned at least 24 commercial properties with 646 residential units in New York City with 462,984 square feet and a city-determined market value of $154.2 million. (Market value is typically about 50% of actual value.) The portfolio has $251.6 million in debt, with top three lenders as M&T Bank, MF1 Capital, and Signature Bank respectively. Within the portfolio, the bulk, or 56 percent of the 462,984 square feet of built space are elevator properties, with walkup properties next occupying 42 percent of the space. They are all located in Manhattan.

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