Witnick Real Estate pays $8.8M to Seagram for 18-unit walkup in Lower East Side

Witnick Real Estate Partners through the entity 86 Clinton Partners LLC paid $8.8 million to Seagram Properties through the entity 86 Clinton LLC for the 18-unit residential walkup building (C7) at 86 Clinton Street in Lower East Side, Manhattan.
The deal closed on November 10, 2022 and was recorded on November 15, 2022. The property has 8,406 square feet of built space and 1,600 square feet of additional air rights for a total buildable of 10,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,052 and the price per buildable square foot is $885 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 February 21, 2013, for $4.5 million. The signatory for Seagram Properties was Paul Daniel Conway. 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 12 properties in 11 transactions for a total of $100.4 million and sold eight properties in seven transactions for a total of $31.4 million over the past 24 months.
The seller Seagram Properties had not purchased any other properties and sold one property in one transaction for a total of $4.8 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Daniel Conway, head officer and Adena Conway, officer. The business entities are Brownstone Professional Services Corp and 86 Clinton Llc. The 8,406-square-foot property generated revenue of $634,426 or $75 per square foot, according to the most recent income and expense figures.

The property

The 86 Clinton 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 $4.2 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 $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 $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 Seagram Properties owned at least one commercial property in New York City with 10,848 square feet and a city-determined market value of $2.1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single mixed-use property. It is located in Queens.

The buyer

The PincusCo database currently indicates that Witnick Real Estate Partners owned at least 31 commercial properties in New York City with 340,778 square feet and a city-determined market value of $96.8 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 340,778 square feet of built space are walkup properties, with elevator properties next occupying 19 percent of the space. The bulk, or 65 percent of the built space, is in Manhattan, with Brooklyn next at 35 percent of the space.

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