Urban View pays $5.8M to Downtown Capital for mixed-use in Lenox Hill

Urban View Development Group through the entity 418 East 75 Street LLC paid $5.8 million to Downtown Capital through the entity Ak Properties Group LLC for the midblock mixed-use building at 418 East 75th Street in Lenox Hill, Manhattan.
The deal closed on April 19, 2022 and was recorded on May 3, 2022. The property has 6,996 square feet of built space and 8,313 square feet of additional air rights for a total buildable of 15,324 square feet according to PincusCo analysis of city data. The sale price per built square foot is $821 and the price per buildable square foot is $375 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 Downtown Capital was Gary Katz. The signatory for Urban View Development Group was Nadav Hamo.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Urban View Development Group purchased one property in one transaction for a total of $8.2 million and sold six properties in six transactions for a total of $18.9 million over the past 24 months.
The seller Downtown Capital purchased one property in one transaction for a total of $9.3 million and sold seven properties in six transactions for a total of $88 million over the same time period. The 6,996-square-foot property generated revenue of $413,788 or $59 per square foot, according to the most recent income and expense figures.

The property

The 418 East 75th Street parcel has frontage of 37 feet and is 102 feet deep with a total lot size of 3,831 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. 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 received $800 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 Lenox Hill, the majority, or 56 percent of the 91.2 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Lenox Hill has the 3rd highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Lenox Hill has had very little major development activity relative to other neighborhoods.It had 436,108 square feet of commercial and multi-family construction under development in the last two years, which represents 0.48 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 22 commercial properties representing 103,985 square feet of the 257,740 square feet. The largest owner is HF Capital, followed by Friedman Management and then Mike Elsayed. There is one active new building construction project totaling 175,878 square feet. It is a 31-unit, 175,878-square-foot R-2 building developed by Weill Cornell Medicine with plans filed November 3, 2021 and it has not been permitted yet.

The majority, or 40 percent of the 409,533 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 40 percent of the space.

The seller

The PincusCo database currently indicates that Downtown Capital owned at least one commercial property with 15,600 square feet and a city-determined market value of $1.7 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Manhattan.

The buyer

The PincusCo database currently indicates that Urban View Development Group owned at least nine commercial properties with 98,901 square feet and a city-determined market value of $17 million. (Market value is typically about 50% of actual value.) The portfolio has $47.5 million in debt, with top three lenders as Terra Solid Capital, Goldman Sachs, and Citibank respectively. Within the portfolio, the bulk, or 55 percent of the 98,901 square feet of built space are residential elevator properties, with specialty properties next occupying 27 percent of the space. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 418 East 75th Street, PincusCo identified seven commercial real estate items of interests occurred over the past 24 months.
Of those seven items, four were sales above $5 million totaling $55.9 million. The most recent of the four was Alonzo Properties NYC which bought the 6,910-square-foot, three-unit mixed-use building (K2) on 430 East 75th Street for $6 million from Downtown Capital on April 15, 2022.
Of those seven items, three were loans above $5 million totaling $105 million. The most recent of the three was Alonzo Properties NYC which borrowed $6.5 million from Hirshmark Capital secured by the 4,016-square-foot, three-unit mixed-use building (K2) on 430 East 75th Street and one other property on April 15, 2022.

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