TARGO Capital pays $8.7M to Nazarian Property for 10-unit walkup in Alphabet City
TARGO Capital Partners through the entity 519 E6 Property Owner LLC paid $8.7 million to Nazarian Property Group through the entity 519 East 6 Npg, LLC for midblock 10-unit residential walkup building at 519 East 6th Street in Alphabet City, Manhattan.
The deal closed on January 25, 2022 and was recorded on March 4, 2022.The property has 7,295 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,192 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 June 7, 2019, for $5.2 million. The signatory for Nazarian Property Group was Lionel Nazarian. The signatory for TARGO Capital Partners was David Gleitman.
Prior sales and revenue
Prior to this transaction, Pincusco has records that the buyer TARGO Capital Partners purchased four properties in three transactions for a total of $34.8 million and has no record it sold any properties over the past 24 months.
The seller Nazarian Property Group had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Lionel Nazarian, head officer. The business entity is 519 East 6 Npg Llc.
The property
The 519 East 6th Street parcel has frontage of 25 feet and is 90 feet deep with a total lot size of 2,272 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.4 million.
Violations and lawsuits
The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received one DOB violation, $2,500 in ECB penalties, nine housing violations, and $2,500 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 Alphabet City, the majority, or 52 percent of the 15.7 million square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 27 percent of the space. In sales, Alphabet City has had very little sales volume relative to other neighborhoods with $113.8 million in sales volume in the last two years. For development, Alphabet City has had very little major development activity relative to other neighborhoods.It had 185,104 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of 10 of the 48 commercial properties representing 157,190 square feet of the 399,568 square feet. The largest owner is JRC Management, followed by Peter Herrick and then Richard Podpirka. There are no active new building construction projects on this tax block.
The majority, or 44 percent of the 385,713 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 41 percent of the space.
The seller
The PincusCo database currently indicates that Nazarian Property Group owned at least two commercial properties with 13,272 square feet and a city-determined market value of $7.5 million. (Market value is typically about 50% of actual value.) The portfolio has $11.8 million in debt, borrowed from New York Community Bank. Within the portfolio, all identified are residential walkup properties. They are all located in Manhattan.
The buyer
The PincusCo database currently indicates that TARGO Capital Partners owned at least two commercial properties with 22,276 square feet and a city-determined market value of $7.9 million. (Market value is typically about 50% of actual value.) The portfolio has $18.9 million in debt, borrowed from New York Community Bank and Dwight Mortgage Trust. Within the portfolio, all identified are residential walkup properties. They are all located in Manhattan.
Surrounding
Within a 400-foot radius of 519 East 6th Street, Pincusco identified four commercial real estate items of interests occurred over the past 24 months.
One of those four items was a sale which Penn South Capital bought the 6,162-square-foot, 10-unit rental (C4) on 164 East 7th Street and one other property for $11.5 million from Peter Herrick on December 28, 2021.
Of those four items, three were loans above $5 million totaling $43.2 million. The most recent of the three was Penn South Capital which borrowed $10.2 million from MidCap Financial secured by the 6,162-square-foot, 10-unit rental (C4) on 164 East 7th Street and one other property on January 3, 2022.
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