Tahl Propp Equities through the entity 1325 Fifth Avenue LLC as borrower signed an initial loan with lender Flushing Bank valued at $9 million for 13 retail condominium units at 1325 and 1330 Fifth Avenue in East Harlem, Manhattan.
The deal closed on March 23, 2023 and was recorded on March 31, 2023. The 13 properties have 33,047 square feet of built space according to the PincusCo analysis of city data. The loan price per built square foot is $272 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 Tahl Propp Equities was Joseph A. Tahl. These are commercial condo units. On March 13, 2023 Tahl Propp sold a package of unsold condo units in the complex for $22.5 million to the Pears brothers.
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 not received any significant violations in the last year.
For the tax lot buildings, one out of the 13 buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot. On the tax lot, the most recent condominium plan was filed by 1325 Fifth Avenue LLC to create 150 residential units and 13 commercial units in a building at 1330 Fifth Avenue in Manhattan, called the Fifth Avenue that has a $160.1 million sellout, according to an March 13, 2017 submission to the New York State Attorney General. The principals of the sponsor, 1325 Fifth Avenue LLC, were Rodney Propp and Joseph Tahl.
In East Harlem, the majority, or 51 percent of the 52.2 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 21 percent of the space. In sales, East Harlem has 1.7 times the average sales volume among other neighborhoods with $602 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, East Harlem has 3.9 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Manhattan. It had 4 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.
On the tax block of 1325 Fifth Avenue, PincusCo has identified the owners of five of the 13 commercial properties representing 130,000 square feet of the 145,428 square feet. The two identified owners are Nerve Inc. and L+M Development Partners.
On the tax block, there were three new building construction projects totaling 1,372,109 square feet. The largest is a 384-unit, 699,865-square-foot R-2 building developed by Michael Daly with plans filed June 6, 2018 and permitted June 16, 2021. The second largest is a 361-unit, 657,357-square-foot R-2 building developed by David Dishy with plans filed January 31, 2019 and permitted August 30, 2019.
The majority, or 100 percent of the 130,000 square feet of built space are elevator buildings, with development buildings next occupying 0 percent of the space.
The PincusCo database currently indicates that Tahl Propp Equities owned at least 17 commercial properties in New York City with 1,732,503 square feet and a city-determined market value of $187.7 million. (Market value is typically about 50% of actual value.) The portfolio has $332.8 million in debt, borrowed from Wilmington Trust and Bellwether Enterprise. Within the portfolio, the bulk, or 86 percent of the 1,732,503 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. They are all located in Manhattan.
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