Urban Resource Institute pays $26M to Migdol Organization for two buildings in Harlem

The nonprofit Urban Resource Institute paid $26 million to the Migdol Organization for two buildings in Harlem in two separate transactions.

In the first, Urban Resource Institute through the entity 2332 And 2250 ACP Housing Development Fund Corp paid $14.6 million to Migdol Organization through the entity 2332 7 Ave LLC for the specialty building (N2) at 2332 Adam C. Powell Boulevard in Harlem, Manhattan.
The deal closed on October 26, 2023 and was recorded on October 31, 2023. The property has 15,150 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $963 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 September 12, 2007, for $3.5 million. The signatory for Migdol Organization was Aaron Migdol. The signatory for Urban Resource Institute was Nathaniel Fields. The contract date was November 1, 2022. Urban Resource Institute is a nonprofit with the stated mission, “To empower individuals, families, and communities, particularly communities of color and other disenfranchised populations, to end cycles of violence, homelessness, poverty, and trauma by increasing safety and resiliency.”

Urban Resource Institute through the entity 2332 And 2250 Acp Housing Development Fund Corp paid $11.4 million to Migdol Organization through the entity 2250 7 Ave LLC for the 35-unit specialty building (N2) at 2250 Adam C Powell Blvd in Harlem, Manhattan. The deal closed on October 26, 2023 and was recorded on October 31, 2023. The property has 11,962 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $953 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 Migdol Organization was Aaron Migdol. The signatory for Urban Resource Institute was Nathaniel Fields. The contract date was November 1, 2022. Urban Resource Institute is a nonprofit with the stated mission, “To empower individuals, families, and communities, particularly communities of color and other disenfranchised populations, to end cycles of violence, homelessness, poverty, and trauma by increasing safety and resiliency.” The stated contract date was November 1, 2023, which is impossible since the sale closed on October 26, 2023, so we changed the contract date to November 1, 2022.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Urban Resource Institute purchased one property in one transactions for a total of $28.3 million and has no record it sold any properties over the past 24 months.
The seller Migdol Organization had not purchased any other properties and sold four properties in three transactions for a total of $3.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Michael Murphy, head officer and Adrianne Rosario, site manager. The business entity is Urban Resource Institute.

The property

The specialty building in Harlem has 15,150 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 32 feet and is 100 feet deep with a total lot size of 3,241 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the Dorrance Brooks Square Historic District. The city-designated market value for the property in 2022 is $864,000. The most recent loan totaled $9 million and was provided by TD Bank on June 22, 2021.

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 $1,460 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 29, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Harlem, The bulk, or 43 percent of the 81 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, Harlem has 2.6 times the average sales volume among other neighborhoods with $915.4 million in sales volume in the last two years and is the 14th highest in Manhattan. For development, Harlem has 3.1 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Manhattan. It had 3.2 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. There were two pre-foreclosure suit filed among other specialty buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of five of the 21 commercial properties representing 22,227 square feet of the 80,831 square feet. The largest owner is Neighborhood Restore, followed by George Michael and then Eugene Mendlowits.
There are no active new building construction projects on this tax block.

All properties are walkup.

The seller

The PincusCo database currently indicates that Migdol Organization owned at least two commercial properties with 35 residential units in New York City with 27,112 square feet and a city-determined market value of $3.7 million. (Market value is typically about 50% of actual value.) The portfolio has $9 million in debt, borrowed from TD Bank. Within the portfolio, all identified are N2 properties. They are all located in Manhattan.

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