Witnick pays Kushner $5.8M for 18-unit walkup in Alphabet City, down from $7M

Witnick Real Estate Partners through the entity 195 E 4th Partners LLC paid $5.8 million to Kushner Companies through the entity 195 East Fourth Owner LLC for the 18-unit residential walkup building (C4) at 195 East 4th Street in Alphabet City, Manhattan.
The deal closed on March 22, 2023 and was recorded on April 24, 2023. The property has 8,975 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $640 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 April 9, 2013, for $7 million. The signatory for Kushner Companies was Matt Burrows. The signatory for Witnick Real Estate Partners was Isaac Abraham. The contract date was February 16, 2023. Kushner paid $7 million for the building in 2013.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Witnick Real Estate Partners purchased 13 properties in 12 transactions for a total of $125.2 million and sold nine properties in eight transactions for a total of $34.2 million over the past 24 months.
The seller Kushner Companies had not purchased any other properties and sold one properties in one transactions for a total of $34.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Tara Dexter, head officer and Robinson Severino, site manager. The business entity is 195 East Fourth Owner Llc. The 8,975-square-foot property generated revenue of $609,271 or $68 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 18 residential units in Alphabet City has 8,975 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 96 feet deep with a total lot size of 2,403 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.7 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 $6,250 in ECB penalties and $7,080 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 20 of the 33 commercial properties representing 279,490 square feet of the 426,799 square feet. The largest owner is Sassouni Management, followed by Marc Shenker and then Kushner Companies.
There are no active new building construction projects on this tax block.

The majority, or 62 percent of the 426,799 square feet of built space are walkup buildings, with elevator buildings next occupying 38 percent of the space.

The seller

The PincusCo database currently indicates that Kushner Companies owned at least 55 commercial properties with 985 residential units in New York City with 570,398 square feet. The portfolio has $585.8 million in debt, with top three lenders as AIG, Citibank, and Argentic Investment Management respectively. Within the portfolio, the bulk, or 90 percent of the 570,398 square feet of built space are walkup properties, with elevator properties next occupying 7 percent of the space. The bulk, or 91 percent of the built space, is in Manhattan, with Brooklyn next at 9 percent of the space.

The buyer

The PincusCo database currently indicates that Witnick Real Estate Partners owned at least 32 commercial properties with 554 residential units in New York City with 364,511 square feet. The portfolio has $107 million in debt, with top three lenders as Dime Community Bank, Signature Bank, and Customers Bank respectively. Within the portfolio, the bulk, or 81 percent of the 364,511 square feet of built space are walkup properties, with elevator properties next occupying 18 percent of the space. The bulk, or 69 percent of the built space, is in Manhattan, with Brooklyn next at 31 percent of the space.

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