Slate Property Group and PCCP pays $37.7M to Kalimian family for 64-unit rental in Midtown East

Slate Property Group and PCCP through the entity 123 East 54th Street Owner LLC paid $37.7 million to the Kalimian family’s Abington Properties through the entity Linmar Group, LLC for the 64-unit residential elevator building (D6) at 123 East 54th Street in Midtown East, Manhattan.
The deal closed on November 9, 2022 and was recorded on November 29, 2022. The property has 56,073 square feet of built space and 11,561 square feet of additional air rights for a total buildable of 67,610 square feet according to PincusCo analysis of city data. The sale price per built square foot is $672 and the price per buildable square foot is $557 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 Abington Properties was Mark Kalimian. The signatory for Slate Property Group and PCCP was David Schwartz. The Commercial Observer reported the sale in mid-November 2022.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Slate Property Group purchased 11 properties in 10 transactions for a total of $352.3 million and sold three properties in three transactions for a total of $33.1 million over the past 24 months.
The seller Abington Properties had not purchased any other properties and sold one properties in one transactions for a total of $12.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Alexander Berley, head officer and Senrajan Lakhan, site manager. The business entity is Linmar Group Llc. The 56,073-square-foot property generated revenue of $4.3 million or $77 per square foot, according to the most recent income and expense figures.

The property

The 123 East 54th Street parcel has frontage of 67 feet and is 100 feet deep with a total lot size of 6,761 square feet. The zoning is C5-2.5 which allows for up to 12 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $22.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received four DOB violations and $50 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 $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of seven of the 29 commercial properties representing 447,475 square feet of the 1,667,384 square feet. The largest owner is MRP Realty, followed by Rudin Management and then Solil Management.
there are no active new building construction projects on this tax block.

The majority, or 78 percent of the 1.6 million square feet of built space are office buildings, with elevator buildings next occupying 19 percent of the space.

The buyer

The PincusCo database currently indicates that Slate Property Group owned at least 58 commercial properties in New York City with 1,925,545 square feet and a city-determined market value of $468.2 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and Heitman LLC respectively. Within the portfolio, the bulk, or 63 percent of the 1,925,545 square feet of built space are elevator properties, with walkup properties next occupying 17 percent of the space. The bulk, or 55 percent of the built space, is in Manhattan, with Brooklyn next at 33 percent of the space.

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