Targo Capital pays $7.9M to FBE for 8-unit walkup in East Village

Targo Capital Partners through the entity 201 Second Property Owner LLC paid $7.9 million to FBE Limited through the entity 201 2nd Ave Realty LLC for the eight-unit residential walkup building (C7) at 201 2nd Avenue in East Village, Manhattan. The expected use is cash flowing.
The deal closed on April 30, 2025 and was recorded on May 5, 2025. The property has 8,975 square feet of built space and 2,035 square feet of additional air rights for a total buildable of 11,000 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $880 and the price per buildable square foot is $718 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 April 15, 2015, for $7.9 million. The signatory for FBE Limited was Yehoshua Leib Fruchthandler . The signatory for Targo Capital Partners was David Gleitman . The contract date was April 10, 2025.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Targo Capital Partners purchased nine properties in six transactions for a total of $84.6 million and has no record it sold any properties over the past 24 months.
The seller FBE Limited had not purchased any other properties and sold five properties in one transaction for a total of $40.1 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Ephraim Fruchthandler, head officer and Ben Herskowitz, site manager. The business entity is 201 2nd Avenue Realty Llc. The 8,975-square-foot property generated revenue of $438,429 or $49 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 8 residential units in East Village has 8,975 square feet of built space and 2,035 square feet of additional air rights for a total buildable of 11,000 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 110 feet deep with a total lot size of 2,750 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 $5.8 million. The most recent loan totaled $5.8 million and was provided by Signature Bank on August 10, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $250 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on February 13, 2020. 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 this tax block, PincusCo has identified the owners of 13 of the 23 commercial properties representing 277,563 square feet of the 367,308 square feet. The largest owner is Manocherian Brothers, followed by Croman Real Estate and then Stellar Management.
There are no active new building construction projects on this tax block.

The majority, or 55 percent of the 367,308 square feet of built space are walkup buildings, with elevator buildings next occupying 39 percent of the space.

The seller

The PincusCo database currently indicates that Fbe Limited owned at least 33 commercial properties with 823 residential units in New York City with 829,470 square feet and a city-determined market value of $128.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 73 percent of the 829,470 square feet of built space are elevator properties, with walkup properties next occupying 9 percent of the space. The bulk, or 74 percent of the built space, is in Brooklyn, with Manhattan next at 17 percent of the space.

The buyer

The PincusCo database currently indicates that Targo Capital Partners owned at least 19 commercial properties with 249 residential units in New York City with 165,094 square feet and a city-determined market value of $90.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 91 percent of the 165,094 square feet of built space are walkup properties, with elevator properties next occupying 6 percent of the space. They are all located in Manhattan.

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