Son Dinh Tran pays $7.9M for two mixed-use properties in Lenox Hill

Son Dinh Tran through the entity 1124-1126 Third Ave LLC paid $7.9 million to Ernest F. Stadler through the entity Jem-6 Realty LLC for the three-unit mixed-use building (S3) at 1124 Third Avenue in Lenox Hill, Manhattan and the six-unit mixed-use building (S5) at 1126 Third Avenue in Lenox Hill, Manhattan.
The deal closed on November 3, 2022 and was recorded on November 16, 2022. The two properties have 8,400 square feet of built space and 17,602 square feet of additional air rights for a total buildable of 26,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $940 and the price per buildable square foot is $303 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 Ernest F. Stadler was Ernest F. Stadler. 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 1124 3rd Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Son Dinh Tran purchased 19 properties in 16 transactions for a total of $93.1 million and sold two properties in one transactions for a total of $5.5 million over the past 24 months.
The seller Ernest F. Stadler had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Ernest Stadler, head officer and Elaine Reidy, officer. The business entity is Jem 6 Realty Llc. The two properties with a total of 8,400 square feet of built space generated revenue of $424,872 per year or $51 per square foot. The sale price per square foot was $940.

The property

The 1124 3rd Avenue parcel has frontage of 20 feet and is 65 feet deep with a total lot size of 1,300 square feet. The zoning is C1-9 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $150 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 Lenox Hill, the bulk, or 35 percent of the 51.9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $3.4 billion in sales volume in the last two years. For development, Lenox Hill has 2.7 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Manhattan. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On the tax block of 1124 3rd Avenue, PincusCo has identified the owners of two of the 20 commercial properties representing 10,530 square feet of the 163,948 square feet. The two identified owners are BLDG Management and March Third NY LLC.
there are no active new building construction projects on this tax block.

The majority, or 53 percent of the 139,623 square feet of built space are mixed-use buildings, with hotel buildings next occupying 29 percent of the space.

The buyer

The PincusCo database currently indicates that Son Dinh Tran owned at least 24 commercial properties in New York City with 293,373 square feet and a city-determined market value of $51.2 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 69 percent of the 293,373 square feet of built space are walkup properties, with hotel properties next occupying 12 percent of the space. The bulk, or 77 percent of the built space, is in Manhattan, with Bronx next at 20 percent of the space.

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