Son Dinh Tran pays $6M to Madison Realty for two walkup properties in East Harlem

Son Dinh Tran through the entity 61-63 East 125 St LLC paid $6 million to Madison Realty Capital through the entity 61-63 125th Street LLC for 12-unit residential walkup building (C7) at 63 East 125th Street in East Harlem, Manhattan and seven-unit residential walkup building (C7) at 61 East 125th Street in East Harlem, Manhattan.
The deal closed on September 8, 2022 and was recorded on September 28, 2022. The two properties have 17,968 square feet of built space and 12,090 square feet of additional air rights for a total buildable of 30,075 square feet according to PincusCo analysis of city data. The sale price per built square foot is $333 and the price per buildable square foot is $199 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 Madison Realty Capital was Urian Yap. The signatory for Son Dinh Tran was Son Dinh Tran.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 63 East 125th Street.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Son Dinh Tran purchased 15 properties in 13 transactions for a total of $77.9 million and sold two properties in one transaction for a total of $5.5 million over the past 24 months.
The seller Madison Realty Capital purchased 17 properties in 17 transactions for a total of $166.6 million and sold seven properties in six transactions for a total of $164.3 million over the same time period. The former owners according to the Department of Housing Preservation and Development included Julia Rodriguez, head officer and Jerry Rugova, agent. The business entities are Silverstone Property Group, Llc and 61-63 125th Street Llc.

The property

The 63 East 125th Street parcel has frontage of 33 feet and is 99 feet deep with a total lot size of 3,314 square feet. The zoning is C4-4D which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.2 million.

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 the tax block of 63 East 125th Street, PincusCo has identified the owners of 13 of the 25 commercial properties representing 127,927 square feet of the 367,111 square feet. The largest owner is Dasha Zhukova, followed by Elysee Investment Company and then Neighborhood Restore.
On the tax block, there were two new building construction projects totaling 215,432 square feet. The largest is a 222-unit, 203,519-square-foot R-2 building developed by Lisa Gomez with plans filed June 22, 2021 and permitted September 15, 2022. The second largest is a 21-unit, 11,913-square-foot R-2 building developed by Wendy Hewlett with plans filed April 13, 2016 and permitted September 13, 2021.

The majority, or 25 percent of the 367,111 square feet of built space are specialty buildings, with walkup buildings next occupying 22 percent of the space.

The seller

The PincusCo database currently indicates that Madison Realty Capital owned at least 67 commercial properties in New York City with 2,265,050 square feet and a city-determined market value of $388.3 million. (Market value is typically about 50% of actual value.) The portfolio has $658 million in debt, with top three lenders as Signature Bank, Athene Annuity And Life Company, and Citibank respectively. Within the portfolio, the bulk, or 57 percent of the 2,265,050 square feet of built space are elevator properties, with walkup properties next occupying 17 percent of the space. The bulk, or 38 percent of the built space, is in Manhattan, with Brooklyn next at 30 percent of the space.

The buyer

The PincusCo database currently indicates that Son Dinh Tran owned at least 20 commercial properties in New York City with 235,858 square feet and a city-determined market value of $40.4 million. (Market value is typically about 50% of actual value.) The portfolio has $75.3 million in debt, with top three lenders as Signature Bank, S3 Capital, and Titan Capital ID respectively. Within the portfolio, the bulk, or 76 percent of the 235,858 square feet of built space are walkup properties, with elevator properties next occupying 13 percent of the space. The bulk, or 71 percent of the built space, is in Manhattan, with Bronx next at 24 percent of the space.

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