Torkian Group pays Copperwood, partner $25M for Lenox Hill dev site

Hersel Torkian’s Torkian Group paid $25 million to Robert Lemle’s Copperwood Real Estate and a partner for three adjacent properties that make up a development site at 1382 to 1386 Second Avenue in Lenox Hill, at the corner of 71st Street. In addition Torkian Group paid $3.76 million for air rights from a neighboring property, 1388 Second Avenue, that is also owned by Copperwood Real Estate.

Ariel Property Advisors was marketing the development site, at one point seeking $29 million.

The Torkian Group has been active in the mid-market, buying retail and mixed-use, and is also developing projects.

Torkian Group through the entity 301 East 71 Investors LLC paid $25 million to Copperwood Real Estate through the entity RSL 1382-1386 Second LLC for the six-unit mixed-use building (S9) at 1382 2nd Avenue in Lenox Hill, Manhattan, six-unit mixed-use building (S9) at 1384 2nd Avenue in Lenox Hill, Manhattan, and six-unit mixed-use building (S9) at 1386 2nd Avenue in Lenox Hill, Manhattan.
The deal closed on September 10, 2024 and was recorded on September 30, 2024. The three properties have 19,388 square feet of built space and 38,482 square feet of additional air rights for a total buildable of 57,880 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,289 and the price per buildable square foot is $431 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.)

Daniel Smith and Robert Lemle signed for the sellers and Hersel Torkian signed for the buyer. The contract date was July 24, 2024.

In March, two family groups including Robert S. Lemle’s Copperwood Real Estate, were at loggerheads over whether they should sell the three walkups as a development site or operate them as an ongoing enterprise. The two sides were at a standstill because each owned a 50-percent stake in the properties, that have a total of 18 residential units and six ground floor retail units.

The business disagreement was disclosed in a lawsuit Lemle filed March 4, 2024, in New York State Supreme Court seeking the sale of the assets located at the corner of Second Avenue and East 71st Street in Manhattan. The dispute highlights the challenges owners face trying to determine how to maximize the value of real estate in a market with low lending and sales volumes.

Case 651149/2024 LINK

The complaint does not mention any type of valuation. According to a PincusCo analysis of city records, the buildings have 57,850 square feet of development rights.

The Ariel asking price is $487 per square foot, which is above the approximate average for Manhattan development site sales in 2023 according to brokerage Development Site Advisors, which is about $400 per foot.

The group that includes Robert S. Lemle wanted to sell the parcels as a development site, while the other group, including members of the Levine and Smith families, wanted to re-tenant and own the assets, according to the complaint.