TARGO Capital signs $13.3M acquisition loan with Citizens Bank for two properties in Nolita

TARGO Capital Partners through the entity 236 Elizabeth Propco LP as borrower signed an acquisition loan with lender Citizens Bank valued at $13.3 million for two properties with 12 residential units including the five-unit residential elevator building (D7) at 242 Elizabeth Street in Nolita, Manhattan and seven-unit residential walkup building (C7) at 236 Elizabeth Street in Nolita, Manhattan.
The deal closed on January 26, 2026 and was recorded on February 23, 2026. The prior lenders were PIMCO and Webster Bank which held separate loans that had a combined original loan amount of $11.5 million. The two properties have 14,451 square feet of built space and 7,733 square feet of additional air rights for a total buildable of 22,195 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $923 and the price per buildable square foot is $601 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 TARGO Capital Partners was David Gleitman . The signatory for Citizens Bank was Scott Van Der Marck .

TARGO Capital Partners paid $22.25 million to the Ervolino Group for two rental buildings at 242 Elizabeth Street and 236 Elizabeth Street in Nolita, Manhattan, in two separate transactions.

The property

The residential walkup building with 7 residential units in Nolita has 14,451 square feet of built space and 7,733 square feet of additional air rights for a total buildable of 22,195 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 92 feet deep with a total lot size of 1,860 square feet. The zoning is C6-2 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential. The city-designated market value for the property in 2022 is $5 million. Citizens Bank on January 26, 2026 bought a loan with a combined original principal of $11.5 million from PIMCO and Webster Bank signed by Michael C. Xylas and Matthew Michalovsky, secured by 236 Elizabeth Street and 242 Elizabeth Street.

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 $75 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two 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 236 Elizabeth Street, PincusCo has identified the owners of 16 of the 33 commercial properties representing 112,468 square feet of the 272,834 square feet. The largest owner is Adam Woodward, followed by Kenneth Podziba and then Targo Capital Partners.
On the tax block, there was one new building construction project filed totaling 19,523 square feet. It is a five-unit, 19,523 square-foot residential (R-2) building submitted by Yaniv Cohen with plans filed December 15, 2015 and permitted December 22, 2017.

The majority, or 52 percent of the 272,834 square feet of built space are mixed-use buildings, with walkup buildings next occupying 37 percent of the space.

The borrower

The PincusCo database currently indicates that TARGO Capital Partners owned at least 23 commercial properties with 273 residential units in New York City with 197,320 square feet and a city-determined market value of $108.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 84 percent of the 197,320 square feet of built space are walkup properties, with elevator properties next occupying 9 percent of the space. They are all located in Manhattan.

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