Vipin Garg pays $4M for mixed-use in Sutton Place, second purchase on block

Vipin Garg through the entity Denali Estate, LLC paid $4 million to Peter K. Ting through the entity The Scene Realty Inc. for the two-unit mixed-use building (S2) at 405 East 57th Street in Sutton Place, Manhattan.
This is the second property Vipin Garg has purchased on the block. Garg bought 401 East 57th Street, a similar mixed-use property on the corner of First Avenue, for $7 million in 2019, which is one building away from 405 East 57th Street.
The deal closed on April 17, 2023 and was recorded on April 25, 2023. The property has 2,500 square feet of built space and 7,653 square feet of additional air rights for a total buildable of 10,150 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,600 and the price per buildable square foot is $394 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 January 15, 2013, for $3.7 million. The signatory for Peter K. Ting was Peter K. Ting. The signatory for Vipin Garg was Vipin Garg.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Vipin Garg had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Peter K. Ting had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Peter Ting, head officer. The business entity is The Scene Realty Inc.

The property

The mixed-use building with 2 residential units in Sutton Place has 2,500 square feet of built space and 7,653 square feet of additional air rights for a total buildable of 10,150 square feet according to a PincusCo analysis of city data. The parcel has frontage of 17 feet and is 57 feet deep with a total lot size of 1,015 square feet. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.3 million.

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 $50 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on May 15, 2015. 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 Sutton Place, The majority, or 70 percent of the 5.2 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 8 percent of the space. In sales, Sutton Place has the 44th highest sale turnover among other neighborhoods in Manhattan with $15.9 million in sales volume in the last two years. For development, Sutton Place has had very little major development activity relative to other neighborhoods.It had 34,430 square feet of commercial and multi-family construction under development in the last two years, which represents 0.66 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 11 commercial properties representing 255,244 square feet of the 571,745 square feet. The largest owner is Sol Goldman Investments, followed by LeFrak and then A&E Real Estate Holdings.
On the tax block, there was one new building construction project filed totaling 441,240 square feet. It is a 121-unit, 441,240 square-foot residential (R-2) building submitted by Gamma Real Estate and filed by Mikhail Khlyavich with plans filed December 28, 2016 and permitted April 28, 2017.

The majority, or 73 percent of the 571,745 square feet of built space are elevator buildings, with hotel buildings next occupying 21 percent of the space.

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