Witnick Real Estate pays $8.3M to Gilman for 20-unit walkup in Lower East Side

Witnick Real Estate Partners through the entity 79 Clinton Partners LLC paid $8.3 million to Gilman Management Corp. through the entity 79 Clinton St. Realty Corp. for 20-unit residential walkup building (C7) at 163 Rivington Street in Lower East Side, Manhattan.
The deal closed on June 24, 2022 and was recorded on July 21, 2022. The property has 13,211 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $628 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 Gilman Management Corp. was Robert Raphael. The signatory for Witnick Real Estate Partners was Isaac Abraham.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Witnick Real Estate Partners purchased 11 properties in 10 transactions for a total of $90.4 million and sold six properties in five transactions for a total of $23.4 million over the past 24 months.
The seller Gilman Management Corp. purchased one properties in one transactions for a total of $3.2 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Robert Raphael, head officer and Nelson Colon, agent. The business entities are Gilman Management Corp. and 79 Clinton Street Realty Corp. The 13,211-square-foot property generated revenue of $587,051 or $44 per square foot, according to the most recent income and expense figures.

The property

The 163 Rivington Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.7 million.The most recent loan totaled 0.0 and was provided by Northeast Bank on September 20, 2021.

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 $200 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 block

On this tax block, PincusCo has identified the owners of 17 of the 46 commercial properties representing 170,029 square feet of the 517,335 square feet. The largest owner is Morris Platt, followed by Croman Real Estate and then Penn South Capital. There are no active new building construction projects on this tax block.

The majority, or 51 percent of the 517,335 square feet of built space are walkup buildings, with elevator buildings next occupying 21 percent of the space.

The seller

The PincusCo database currently indicates that Witnick Real Estate Partners owned at least 32 commercial properties with 343,063 square feet, 508 residential units and a city-determined market value of $96.9 million. (Market value is typically about 50% of actual value.) The portfolio has $81.5 million in debt, with top three lenders as Dime Community Bank, Signature Bank, and Customers Bank respectively. Within the portfolio, the bulk, or 77 percent of the 343,063 square feet of built space are walkup properties, with elevator properties next occupying 19 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Brooklyn next at 39 percent of the space.

The buyer

The PincusCo database currently indicates that Brighton Management owned at least one commercial property in New York City with 11,236 square feet and a city-determined market value of $3.2 million. (Market value is typically about 50% of actual value.) The portfolio has $5 million in debt, borrowed from New York Community Bank. The portfolio consists of at least a single walkup property. It is located in Manhattan.

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