Tatar Holding pays $5.1M to Conway Capital for 14-unit walkup in Alphabet City

German real estate investment firm Tatar Holding through the entity Tatar Mhl LLC paid $5.1 million to Conway Capital through the entity Aajc 506 LLC for the 14-unit residential walkup building (C4) at 506 East 6th Street in Alphabet City, Manhattan. This is at least the second property Conway Capital has sold to Tatar Holding in the past year.
The deal closed on January 12, 2024 and was recorded on January 22, 2024. The property has 6,825 square feet of built space and 460 square feet of additional air rights for a total buildable of 7,275 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $747 and the price per buildable square foot is $701 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 August 24, 2020, for $4 million. The signatory for Conway Capital was Abe Cohen. The signatory for Tatar Holding was Onur Tatar. The contract date was January 12, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Tatar Holding purchased five properties in three transactions for a total of $48 million and has no record it sold any properties over the past 24 months.
The seller Conway Capital purchased five properties in five transactions for a total of $19.8 million and sold two properties in two transactions for a total of $11.3 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Abe Cohen, head officer and Jay Gelb, site manager. The business entities are Arya Management Llc and Aajc 506 Llc. The 6,825-square-foot property generated revenue of $335,521 or $49 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 14 residential units in Alphabet City has 6,825 square feet of built space and 460 square feet of additional air rights for a total buildable of 7,275 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 97 feet deep with a total lot size of 2,425 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 $2.3 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 received $200 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 $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 11 of the 28 commercial properties representing 76,047 square feet of the 253,283 square feet. The largest owner is Sassouni Management, followed by Russell Cooper and then Morris Platt.
There are no active new building construction projects on this tax block.

The majority, or 78 percent of the 253,283 square feet of built space are walkup buildings, with elevator buildings next occupying 22 percent of the space.

The seller

The PincusCo database currently indicates that Conway Capital owned at least 33 commercial properties with 286 residential units in New York City with 228,372 square feet and a city-determined market value of $76.4 million. (Market value is typically about 50% of actual value.) The portfolio has $147.1 million in debt, with top three lenders as Arbor Realty Trust, Argentic Investment Management, and Citibank respectively. Within the portfolio, the bulk, or 66 percent of the 228,372 square feet of built space are walkup properties, with mixed-use properties next occupying 22 percent of the space. The bulk, or 58 percent of the built space, is in Brooklyn, with Manhattan next at 42 percent of the space.

The buyer

The PincusCo database currently indicates that Tatar Holding owned at least five commercial properties with 59 residential units in New York City with 37,262 square feet and a city-determined market value of $16 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, the bulk, or 80 percent of the 37,262 square feet of built space are walkup properties, with retail properties next occupying 20 percent of the space. They are all located in Manhattan.

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