Virginia doctor pays $11.8M to Kings Capital for 20-unit walkup in Hell’s Kitchen

Virginia doctor David Chang through the entity ZC Aurora LLC paid $11.8 million to Kings Capital through the entity 3503 Ditmars Blvd LLC for the 20-unit residential walkup building (C4) at 356 West 48th Street in Hell’s Kitchen, Manhattan. The expected use is cash flowing.
The deal closed on December 6, 2024 and was recorded on December 17, 2024. The property has 9,900 square feet of built space and 5,220 square feet of additional air rights for a total buildable of 15,110 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,191 and the price per buildable square foot is $780 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 12, 2022, for $4.7 million. The signatory for Kings Capital was Jeffrey Znaty. The signatory for David Chang was David Chang. The contract date was October 9, 2024. David Chang is a doctor and real estate investor in Newport News, Virginia.
Meridian Capital Group’s Amit Doshi and Shallini Mehra brokered the sale, according to the New York Real Estate Journal.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer David Chang had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Kings Capital purchased six properties in six transactions for a total of $28.6 million and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Michael Fleisch, head officer. The business entity is 356 Hk Llc. The 9,900-square-foot property generated revenue of $521,210 or $53 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 20 residential units in Hell’s Kitchen has 9,900 square feet of built space and 5,220 square feet of additional air rights for a total buildable of 15,110 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,510 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.8 million. The most recent loan totaled $5.8 million and was provided by Webster Bank on December 12, 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 $2,150 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 $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 22 of the 29 commercial properties representing 275,058 square feet of the 336,165 square feet. The largest owner is Nyc Department Of Education, followed by Chestnut Holdings Of New York and then BLDG Management.
On the tax block, there was one new building construction project filed totaling 50,000 square feet. It is a 169-unit, 50,000 square-foot hotel/dormitory/shelter (R-1) building submitted by McSam Hotel Group and filed by Sam Chang with plans filed July 31, 2020 and it has not been permitted yet.

The majority, or 46 percent of the 336,165 square feet of built space are walkup buildings, with specialty buildings next occupying 24 percent of the space.

The seller

The PincusCo database currently indicates that Kings Capital owned at least nine commercial properties with 109 residential units in New York City with 95,111 square feet and a city-determined market value of $34.4 million. (Market value is typically about 50% of actual value.) The portfolio has $61.5 million in debt, with top three lenders as Webster Bank, Derby Copeland Capital, and Maxim Credit Group respectively. Within the portfolio, the bulk, or 50 percent of the 95,111 square feet of built space are walkup properties, with elevator properties next occupying 38 percent of the space. The bulk, or 71 percent of the built space, is in Manhattan, with Brooklyn next at 29 percent of the space.

Direct link to Acris document. link