Two80 Real Estate pays $6M to Bronstein Properties for 53-unit walkup in Washington Heights

Two80 Real Estate Ventures and Michaell DiFonzo through the entity 35 Thayer Realty LLC paid $6 million to Bronstein Properties through the entity Thayer 35 LLC for the 53-unit residential walkup building (C1) at 35 Thayer Street in Washington Heights, Manhattan.
The deal closed on November 30, 2023 and was recorded on December 4, 2023. The property has 34,040 square feet of built space and 5,999 square feet of additional air rights for a total buildable of 39,996 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $176 and the price per buildable square foot is $150 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 October 31, 2019, for $6.7 million. The signatory for Bronstein Properties was Barry Rudofsky. The signatory for Two80 Real Estate Ventures and Michaell DiFonzo was Jesse Deutch and Michael DiFonzo. The contract date was August 30, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Two80 Real Estate Ventures purchased three properties in three transactions for a total of $20.5 million and has no record it sold any properties over the past 24 months.
The seller Bronstein Properties had not purchased any other properties and sold six properties in four transactions for a total of $34.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Barry Rudofsky, head officer and Scott Silverman, officer. The business entities are Bronstein Properties, Llc and Thayer 35, Llc. The 34,040-square-foot property generated revenue of $762,191 or $22 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 53 residential units in Washington Heights has 34,040 square feet of built space and 5,999 square feet of additional air rights for a total buildable of 39,996 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,999 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3 million. The most recent loan totaled $5.2 million and was provided by New York Community Bank on May 1, 2022.

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 one housing violation 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 45 of the 72 commercial properties representing 1,310,638 square feet of the 1,835,311 square feet. The largest owner is Verizon, followed by Langsam Property Services and then Alma Realty.
There are no active new building construction projects on this tax block.

The majority, or 74 percent of the 1.8 million square feet of built space are walkup buildings, with elevator buildings next occupying 20 percent of the space.

The seller

The PincusCo database currently indicates that Bronstein Properties owned at least 91 commercial properties with 4,655 residential units in New York City with 4,239,498 square feet and a city-determined market value of $468.1 million. (Market value is typically about 50% of actual value.) The portfolio has $486.1 million in debt, with top three lenders as New York Community Bank, Capital One, and Signature Bank respectively. Within the portfolio, the bulk, or 66 percent of the 4,239,498 square feet of built space are elevator properties, with walkup properties next occupying 34 percent of the space. The bulk, or 46 percent of the built space, is in Queens, with Manhattan next at 29 percent of the space.

The buyer

The PincusCo database currently indicates that Two80 Real Estate Ventures owned at least 14 commercial properties with 281 residential units in New York City with 235,608 square feet and a city-determined market value of $20.7 million. (Market value is typically about 50% of actual value.) The portfolio has $12.8 million in debt, borrowed from Dime Community Bank and Ridgewood Savings Bank. Within the portfolio, the bulk, or 96 percent of the 235,608 square feet of built space are walkup properties, with M4 properties next occupying 4 percent of the space. They are all located in Manhattan.

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