Sky Management pays $11.2M to Kushner for 31 units in East Village

Jonathan Ohebshalom’s Sky Management paid Kushner Companies $11.2 million for two rental properties in the East Village in two transactions.

In the first, Sky Management through the entity Golden 11 Realty LLC paid $7.6 million to Kushner Companies through the entity 318 East 11th Street Realty LLC for the 16-unit residential walkup building (C7) at 318 East 11th Street in East Village, Manhattan. The expected use is cash flowing.
The deal closed on November 14, 2024 and was recorded on November 21, 2024. The property has 10,392 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $733 per the PincusCo analysis.

In the second, Sky Management through the entity Golden 7 Realty LLC paid $3.6 million to Kushner Companies through the entity 99 East 7th Street Realty LLC for the 15-unit residential walkup building (C4) at 99 East 7th Street in East Village, Manhattan. The expected use is cash flowing.
The deal closed on November 14, 2024 and was recorded on November 21, 2024. The property has 9,820 square feet of built space and 436 square feet of additional air rights for a total buildable of 10,268 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $366 and the price per buildable square foot is $350 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 Kushner Companies was Matthew Burrows. The signatory for Sky Management was Jonathan Ohebshalom. The contract date was September 24, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Sky Management purchased two properties in two transactions for a total of $30.3 million and sold two properties in two transactions for a total of $64.8 million over the past 24 months.
The seller Kushner Companies purchased one property in one transaction for a total of $33.8 million and sold 24 properties in 15 transactions for a total of $253.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Tara Dexter, head officer and Luis Rodriguez, site manager. The business entity is 318 East 11th St Realty Llc.

The property

The residential walkup building with 16 residential units in East Village has 10,392 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 94 feet deep with a total lot size of 2,369 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.9 million. The most recent loan totaled $6.4 million and was provided by New York Community Bank on February 20, 2020.

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 26 housing violations and $550 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 21 of the 37 commercial properties representing 325,672 square feet of the 480,153 square feet. The largest owner is BLDG Management, followed by Meadow Partners and then Kushner Companies.
There are no active new building construction projects on this tax block.

The majority, or 56 percent of the 480,153 square feet of built space are walkup buildings, with elevator buildings next occupying 31 percent of the space.

The seller

The PincusCo database currently indicates that Kushner Companies owned at least 34 commercial properties with 625 residential units in New York City with 446,174 square feet and a city-determined market value of $154 million. (Market value is typically about 50% of actual value.) The portfolio has $452.6 million in debt, with top three lenders as AIG, MSC 2019-L3, and Argentic Investment Management respectively. Within the portfolio, the bulk, or 70 percent of the 446,174 square feet of built space are walkup properties, with office properties next occupying 21 percent of the space. The bulk, or 68 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.

The buyer

The PincusCo database currently indicates that Sky Management owned at least 25 commercial properties with 668 residential units in New York City with 481,039 square feet and a city-determined market value of $161.5 million. (Market value is typically about 50% of actual value.) The portfolio has $259.3 million in debt, with top three lenders as M&T Bank, MF1 Capital, and Signature Bank respectively. Within the portfolio, the bulk, or 54 percent of the 481,039 square feet of built space are elevator properties, with walkup properties next occupying 44 percent of the space. They are all located in Manhattan.

Direct link to Acris document. link