Tatar Holding pays Conway Capital $7M for 8-unit walkup in East Village

German investment firm Tatar Holding through the entity Tatar LMH LLC acquired an interest from Conway Capital through the entity 87 East 4th Street LLC valued at $7 million for eight-unit residential walkup building (C7) at 87 East 4th Street in East Village, Manhattan.
The deal closed on November 3, 2023 and was recorded on November 15, 2023. The property has 4,700 square feet of built space and 2,086 square feet of additional air rights for a total buildable of 6,784 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,489 and the price per buildable square foot is $1,031 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 15, 2018, for $6.8 million. This is an entity level purchase of 100 percent of the interest in the property, it is not a deed transfer.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Tatar Holding purchased four properties in two transactions for a total of $41 million and has no record it sold any properties over the past 24 months.
The seller Conway Capital purchased six properties in six transactions for a total of $27.8 million and sold one property in one transaction for a total of $4.3 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Abe Cohen, head officer and Eric Setton, agent. The business entities are Arya Management Llc and Rc 87 East 4th Street Llc.

The property

The residential walkup building with 8 residential units in East Village has 4,700 square feet of built space and 2,086 square feet of additional air rights for a total buildable of 6,784 square feet according to a PincusCo analysis of city data. The parcel has frontage of 23 feet and is 72 feet deep with a total lot size of 1,696 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the East Village / Lower East Side Historic District. The city-designated market value for the property in 2022 is $3.1 million. The most recent loan totaled $6.1 million and was provided by Ladder Capital on August 27, 2019.

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 14 housing violations and $300 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 19 of the 29 commercial properties representing 207,979 square feet of the 379,818 square feet. The largest owner is Son Dinh Tran, followed by Sang M. Kwak and then Sai Man Yau.
There are no active new building construction projects on this tax block.

The majority, or 54 percent of the 379,818 square feet of built space are walkup buildings, with elevator buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that Conway Capital owned at least 34 commercial properties with 294 residential units in New York City with 233,072 square feet and a city-determined market value of $79.4 million. (Market value is typically about 50% of actual value.) The portfolio has $153.2 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 233,072 square feet of built space are walkup properties, with mixed-use properties next occupying 22 percent of the space. The bulk, or 57 percent of the built space, is in Brooklyn, with Manhattan next at 43 percent of the space.

The buyer

The PincusCo database currently indicates that Tatar Holding owned at least four commercial properties with 51 residential units in New York City with 32,562 square feet and a city-determined market value of $12.9 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 78 percent of the 32,562 square feet of built space are walkup properties, with retail properties next occupying 22 percent of the space. They are all located in Manhattan.

Direct link to Acris document. link