A trustee representing the estate of one of four siblings who allegedly each own a 22.5 percent stake in a five-building portfolio of multifamily buildings in the East Village and Astoria with a potential value of $80 million, is suing two of the siblings, alleging they are not following through with a purchase of the deceased owner’s stake.
According to the complaint, Anna Mycak, the trustee for Andrew Mycak, who died in 2020, is asking for the remaining owners to purchase Andrew Mycak’s 22.5 percent stake estimated to be worth $18 million. The complaint says the five properties could be worth as much as $80 million.
The Mycak family represented by three of their five properties, Mycak Associates LLC, Vermyck LLC, M&G Mycak LLC, are plaintiffs in a federal case filed in 2019 led by Community Housing Improvement Program and the Rent Stabilization Association, that seeks to overturn New York City’s current system of rent regulation. The new litigation is not related to the federal action and the complaint does not mention the federal action.
Siblings Andrew Mycak, George Mycak, Walter Mycak, Lidia Mycak, along with the individuals Vanessa Greer, and Nicholas Greer formed the ownership companies in approximately 2001. The properties are 28-30 34th Street and 31-16 35th Avenue in Astoria, and 303 East 5th Street, 340 East 5th Street and 234 East 5th Street in the East Village.
The Myack siblings each owned 22.5 percent, for a combined 90%. According to the complaint, “Consistent with the foregoing, Andrew received approximately $100 thousand dollars per year in connection with his 22.5% interest in the Mycak Entities… From the inception of the Mycak Entities, Andrew’s 22.5% interest yielded over $2 million dollars. Since Andrew’s death [in 2020], Plaintiff has received nothing from Mycak Entities…. [an appraiser’s] 2020 appraised value of the Mycak Entity’s properties totaled approximately $38 million dollars… Defendants agreed to repurchase Plaintiff’s interest for only $4.15 million dollars (the “Discounted Price”)…Nearly one year later, Defendants have failed to repurchase Plaintiff’s interest as they agreed..Currently, Plaintiffs anticipate the sale of the Mycak Entity’s properties would yield approximately $80 million dollars and net Plaintiff approximately $18 million dollars.”
One property is an elevator building with 84 residential units at 28-30 34th Street in Astoria that has 61,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 150 feet and is 97 feet deep with a total lot size of 14,639 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $7.8 million.
Another property is a walkup building with six residential units at 234 East 5th Street in the East Village that has 6,155 square feet of built space and 1,919 square feet of additional air rights for a total buildable of 8,080 square feet according to a PincusCo analysis of city data. The parcel has frontage of 21 feet and is 96 feet deep with a total lot size of 2,020 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The property is in the East Village / Lower East Side Historic District. The city-designated market value for the property in 2022 is $4.7 million.