German investment firm Tatar Holding through the entity Tatar Mupe LLC paid Thor Equities through the entity Coney Bath, LLC $11 million for the retail townhouse building (K4) at 60 East 66th Street in Lenox Hill, Manhattan. This purchase represents an entity level purchase of 99 percent stake in the entity. Joseph Sitt’s Thor Equities retains a 1 percent stake, according to a person familiar with the deal.
This is Tatar Holding’s second commercial purchase this year. It paid $30 million in April 2023 to Magnum Real Estate Group through the entity 165 Ludlow Owner LLC for three adjacent walkup properties 163, 165 and 167 Ludlow Street in the Lower East Side, Manhattan.
The Lenox Hill deal closed on September 12, 2023 and was recorded on September 26, 2023. The property has 7,312 square feet of built space and 722 square feet of additional air rights for a total buildable of 8,028 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,504 and the price per buildable square foot is $1,370 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 February 18, 2010, for $5.8 million.
The property had been on the market for more than 10 years, The Real Deal reported last year, with various brokerage firms. The selling broker was a Leslie J. Garfield team led by Matthew Lesser, most recently asking $13.75 million.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Tatar Holding purchased three properties in one transactions for a total of $30 million and has no record it sold any properties over the past 24 months.
The seller Thor Equities purchased one property in one transaction for a total of $8.1 million and sold 10 properties in eight transactions for a total of $204.3 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Jerry Casola, individual owner and George Rivosecchi, site manager.
The retail building in Lenox Hill has 7,312 square feet of built space and 722 square feet of additional air rights for a total buildable of 8,028 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,007 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The property is in the Upper East Side Historic District. The city-designated market value for the property in 2022 is $2.8 million.
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 not received any significant violations in the last year.
There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.
In Lenox Hill, The bulk, or 35 percent of the 52 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $4.8 billion in sales volume in the last two years. For development, Lenox Hill has 3.4 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Manhattan. It had 3.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.
On this tax block, PincusCo has identified the owners of nine of the 17 commercial properties representing 99,309 square feet of the 166,657 square feet. The largest owner is Sol Goldman Investments, followed by Sl Green Realty and then Sanjeev Nath.
On the tax block, there was one new building construction project filed totaling 86,192 square feet. It is a 11-unit, 86,192 square-foot residential (R-2) building submitted by Robert Dewitt with plans filed February 7, 2019 and permitted February 7, 2022.
The majority, or 38 percent of the 166,657 square feet of built space are mixed-use buildings, with walkup buildings next occupying 31 percent of the space.
The PincusCo database currently indicates that Thor Equities owned at least 25 commercial properties with 367 residential units in New York City with 762,541 square feet and a city-determined market value of $185.4 million. (Market value is typically about 50% of actual value.) The portfolio has $248.8 million in debt, with top three lenders as MetLife, Athene Holding, and AB CarVal Investors respectively. Within the portfolio, the bulk, or 42 percent of the 762,541 square feet of built space are elevator properties, with industrial properties next occupying 20 percent of the space. The bulk, or 79 percent of the built space, is in Manhattan, with Brooklyn next at 21 percent of the space.
The PincusCo database currently indicates that Tatar Holding owned at least three commercial properties with 51 residential units in New York City with 25,250 square feet and a city-determined market value of $10.1 million. (Market value is typically about 50% of actual value.) The portfolio has $23.5 million in debt, borrowed from Morgan Stanley Capital I Trust 2021-L7. Within the portfolio, all identified are walkup properties. They are all located in Manhattan.
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