TARGO Capital pays $57.45M to Kushner for 6 walkups in Alphabet City, East Village

TARGO Capital Partners paid $57.45 million to Kushner Companies for six walkup properties in Alphabet City and the East Village, Manhattan, with a total of 112 residential units.

In the first transaction, TARGO Capital Partners through the entity 199-203 E4 Property Owner LLC paid $25.5 million to Kushner Companies through the entity 199-203 East Fourth Owner LLC for the nine-unit walkup (C4) at 199 East 4th Street, the 10-unit walkup (C4) at 203 East 4th Street, and the nine-unit walkup (C4) at 201 East 4th Street, all in Alphabet City, Manhattan.
The deal closed on December 20, 2023 and was recorded on January 5, 2024. The three properties have 20,960 square feet of built space and 672 square feet of additional air rights for a total buildable of 21,627 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,216 and the price per buildable square foot is $1,179 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 Kushner Companies was Matthew Burrows. The signatory for TARGO Capital Partners was David Gleitman. The contract date was August 17, 2023.

In the second, TARGO Capital Partners through the entity 118-120 E4 Property Owner LLC paid $22.9 million to Kushner Companies through the entity 118-120 East Fourth Owner LLC for the 48-unit residential walkup building (C1) at 120 East 4th Street in East Village, Manhattan and 24-unit residential walkup building (C1) at 118 East 4th Street in East Village, Manhattan.
The deal closed on December 20, 2023 and was recorded on January 5, 2024. The two properties have 25,713 square feet of built space and 3,124 square feet of additional air rights for a total buildable of 28,840 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $889 and the price per buildable square foot is $793 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 Kushner Companies was Matthew Burrows. The signatory for TARGO Capital Partners was David Gleitman. The contract date was August 17, 2023.

In the third, TARGO Capital Partners through the entity 315 E10 Property Owner LLC paid $9.1 million to Kushner Companies through the entity 315 East 10th Street LLC for the 12-unit residential elevator building (D1) at 315 East 10th Street in Alphabet City, Manhattan.

The deal closed on December 20, 2023 and was recorded on January 5, 2024. The property has 9,348 square feet of built space and 118 square feet of additional air rights for a total buildable of 9,476 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $969 and the price per buildable square foot is $956 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 seller bought the property on May 7, 2013, for $9.6 million. The signatory for Kushner Companies was Matthew Burrows. The signatory for TARGO Capital Partners was David Gleitman. The contract date was August 17, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer TARGO Capital Partners purchased eight properties in six transactions for a total of $72.8 million and has no record it sold any properties over the past 24 months.
The seller Kushner Companies had not purchased any other properties and sold six properties in five transactions for a total of $83 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Tara Dexter, head officer and Robinson Severino, site manager. The business entity is 199-203 East Fourth Owner Llc.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received nine housing violations and $3,455 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the three 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 $1 million on this tax lot.

The block

On the tax block of 203 East 4th Street, PincusCo has identified the owners of 20 of the 33 commercial properties representing 279,490 square feet of the 426,799 square feet. The largest owner is Witnick Real Estate Partners, followed by Sassouni Management and then Marc Shenker.
On the tax block, there was one new building construction project filed totaling 5,188 square feet. It is a four-unit, 5,188 square-foot residential (R-2) building submitted by Mahnaz Fouladian with plans filed June 27, 2023 and it has not been permitted yet.

The majority, or 62 percent of the 426,799 square feet of built space are walkup buildings, with elevator buildings next occupying 38 percent of the space.

The seller

The PincusCo database currently indicates that Kushner Companies owned at least 50 commercial properties with 861 residential units in New York City with 501,066 square feet and a city-determined market value of $198.6 million. (Market value is typically about 50% of actual value.) The portfolio has $565.9 million in debt, with top three lenders as AIG, Citibank, and Argentic Investment Management respectively. Within the portfolio, the bulk, or 88 percent of the 501,066 square feet of built space are walkup properties, with elevator properties next occupying 8 percent of the space. The bulk, or 90 percent of the built space, is in Manhattan, with Brooklyn next at 10 percent of the space.

The buyer

The PincusCo database currently indicates that TARGO Capital Partners owned at least 12 commercial properties with 127 residential units in New York City with 103,948 square feet and a city-determined market value of $60.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 94 percent of the 103,948 square feet of built space are walkup properties, with mixed-use properties next occupying 6 percent of the space. They are all located in Manhattan.

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