Son Dinh Tran pays $10.9M to Stephen Rosen for walkups in East Village, Hell’s Kitchen

Son Dinh Tran paid $10.9 million to Stephen Rosen for a walkups in the East Village and another in Hell’s Kitchen, in two separate transactions.

In the first, Son Dinh Tran through the entity 14 First Ave LLC paid $6 million to Stephen Rosen through the entity Nesor Associates, L.L.C. for midblock 16-unit residential walkup building at 14 1st Avenue in East Village, Manhattan.
The deal closed on May 17, 2022 and was recorded on June 9, 2022. The property has 9,750 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $615 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 Stephen Rosen was Stephen D. Rosen. The signatory for Son Dinh Tran was Son Dinh Tran.

In the second, Son Dinh Tran through the entity 445 West 46th St LLC paid $4.9 million to Stephen Rosen through the entity Nesor Associates, L.L.C. for midblock 22-unit residential walkup building at 445 West 46th Street in Hell’s Kitchen, Manhattan.
The deal closed on May 17, 2022 and was recorded on June 9, 2022. The property has 14,550 square feet of built space and 14,659 square feet of additional air rights for a total buildable of 29,221 square feet according to PincusCo analysis of city data. The sale price per built square foot is $336 and the price per buildable square foot is $167 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 Stephen Rosen was Stephen D. Rosen. The signatory for Son Dinh Tran was Son Dinh Tran.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Son Dinh Tran purchased 12 properties in 10 transactions for a total of $64.4 million and sold two properties in one transactions for a total of $5.4 million over the past 24 months.
The seller Stephen Rosen had not purchased any other properties and sold one properties in one transactions for a total of $2.8 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Stephen Rosen, head officer and Melinda Wong, agent. The business entity is Nesor Associates Llc. The 9,750-square-foot property generated revenue of $555,734 or $57 per square foot, according to the most recent income and expense figures.

The property

The 14 1st Avenue parcel has frontage of 32 feet and is 70 feet deep with a total lot size of 2,275 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.3 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 $175 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 neighborhood

In East Village, the bulk, or 35 percent of the 19.3 million square feet of commercial built space are residential walkup buildings, with residential elevator buildings next occupying 27 percent of the space. In sales, East Village has 2.1 times the average sales volume among other neighborhoods with $593.6 million in sales volume in the last two years and is the 21st highest in Manhattan. For development, East Village has had very little major development activity relative to other neighborhoods.It had 152,634 square feet of commercial and multi-family construction under development in the last two years, which represents 0.79 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 28 commercial properties representing 192,106 square feet of the 375,274 square feet. The largest owner is New York City Housing Authority, followed by Adam Semler and then Michael Medovoy. There are two active new building construction projects totaling 32,083 square feet. The largest is a 22-unit, 19,325-square-foot R-2 building developed by Sergey Rybak with plans filed May 24, 2018 and permitted October 11, 2019. The second largest is a seven-unit, 12,758-square-foot R-2 building developed by Cynthia Wu with plans filed October 31, 2014 and permitted January 12, 2021.

The majority, or 38 percent of the 421,794 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 37 percent of the space.

The buyer

The PincusCo database currently indicates that Son Dinh Tran owned at least 17 commercial properties with 202,368 square feet and a city-determined market value of $33.5 million. (Market value is typically about 50% of actual value.) The portfolio has $54.8 million in debt, with top three lenders as S3 Capital, Signature Bank, and Titan Capital ID respectively. Within the portfolio, the bulk, or 72 percent of the 202,368 square feet of built space are walkup properties, with elevator properties next occupying 15 percent of the space. The bulk, or 67 percent of the built space, is in Manhattan, with Bronx next at 28 percent of the space.

Surrounding

Within a 400-foot radius of 14 1st Avenue, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, two were sales above $5 million totaling $10 million. The most recent of the two was Adam J. Semler which bought the 8,924-square-foot, 10-unit rental (C1) on 109 East 2nd Street for $5 million from Kokot Realty Enterprises on May 11, 2021.
Of those five items, three were loans above $5 million totaling $50.6 million. The most recent of the three was Granite International Management which borrowed $7.7 million from JPMorgan Chase secured by the 24,363-square-foot, 42-unit rental (C7) on 21 1st Avenue on May 11, 2022.

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