Upper Group pays $5M for retail in Chinatown

Upper Group through the entity 25 Allen Street Opportunity LLC paid $5 million to Miriam Sand and Stephanie Rosenfeld through the entity 25 Allan LLC for the retail building (K2) at 25 Allen Street in Chinatown, Manhattan.
The deal closed on November 30, 2022 and was recorded on December 12, 2022. The property has 3,872 square feet of built space and 3,828 square feet of additional air rights for a total buildable of 7,702 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,291 and the price per buildable square foot is $649 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 December 15, 2021, for $3.8 million. The signatory for Miriam Sand and Stephanie Rosenfeld was Miriam Sand and Stephanie Rosenfeld. The signatory for Upper Group was Javier Martinez.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Upper Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Miriam Sand had not purchased any other properties and sold one properties in one transactions for a total of $2.5 million over the same time period. The 3,872-square-foot property generated revenue of $358,377 or $93 per square foot, according to the most recent income and expense figures.

The property

The 25 Allen Street parcel has frontage of 25 feet and is 87 feet deep with a total lot size of 2,239 square feet. The city-designated market value for the property in 2022 is $1.6 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 not received any significant violations 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 Chinatown, the bulk, or 35 percent of the 8.5 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 17 percent of the space. In sales, Chinatown has had very little sales volume relative to other neighborhoods with $132 million in sales volume in the last two years. For development, Chinatown has had very little major development activity relative to other neighborhoods.It had 396,317 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 25 commercial properties representing 43,116 square feet of the 275,637 square feet. The largest owner is Isack Rosenberg, followed by Bushwack Capital and then 25 Allan LLC.
There are no active new building construction projects on this tax block.

The majority, or 60 percent of the 275,637 square feet of built space are walkup buildings, with mixed-use buildings next occupying 26 percent of the space.

The buyer

The PincusCo database currently indicates that Upper Group owned at least one commercial property in New York City with 11,352 square feet and a city-determined market value of $1.1 million. (Market value is typically about 50% of actual value.) The portfolio has $7 million in debt, borrowed from Webster Bank. The portfolio consists of at least a single walkup property. It is located in Manhattan.

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