Torkian Group pays $7.2M for mixed-use in Chelsea

Hersel Torkian’s Torkian Group through the entity 304 Eighth LLC paid $7.2 million to Nicholas Stroghilas, Robert Macropoulos, Helen Macropoulos, and John Macropoulos through the entity Eism LLC (and others) for the three-unit mixed-use building (S9) at 304 Eighth Avenue in Chelsea, Manhattan.
The deal closed on February 15, 2023 and was recorded on February 28, 2023. The property has 6,361 square feet of built space and 8,486 square feet of additional air rights for a total buildable of 14,851 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,131 and the price per buildable square foot is $484 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 Nicholas Stroghilas, Robert Macropoulos, Helen Macropoulos, and John Macropoulos was Nicholas Stroghilas, Robert Macropoulos, Helen Macropoulos, and John Macropoulos. The signatory for Torkian Group was Hersel Torkian.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Torkian Group purchased one property in one transaction for a total of $12.9 million and has no record it sold any properties over the past 24 months.
The seller Nicholas Stroghilas 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 Helen Macropoulos, head officer. The business entity is 304 8th Avenue Llc. The 6,361-square-foot property generated revenue of $279,630 or $44 per square foot, according to the most recent income and expense figures.

The property

The 304 8th Avenue parcel has frontage of 24 feet and is 100 feet deep with a total lot size of 2,467 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $275 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 Chelsea, the bulk, or 36 percent of the 52.6 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 4th highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Chelsea has 2.1 times the average amount of major developments relative to other neighborhoods and is the 13th highest in Manhattan. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 26 commercial properties representing 617,727 square feet of the 931,095 square feet. The largest owner is Artimus, followed by TF Cornerstone and then Naftali Group.
There are no active new building construction projects on this tax block.

The majority, or 76 percent of the 644,053 square feet of built space are elevator buildings, with office buildings next occupying 21 percent of the space.

The buyer

The PincusCo database currently indicates that Torkian Group owned at least eight commercial properties in New York City with 188,018 square feet and a city-determined market value of $87.7 million. (Market value is typically about 50% of actual value.) The portfolio has $244.5 million in debt, with top three lenders as Valley National Bank, Bank Leumi, and New York Community Bank respectively. Within the portfolio, the bulk, or 64 percent of the 188,018 square feet of built space are elevator properties, with walkup properties next occupying 20 percent of the space. The bulk, or 97 percent of the built space, is in Manhattan, with Brooklyn next at 3 percent of the space.

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