Yechiel Newhouse pays $26M to Related for 238-unit rental in Parkchester, last sold for $38M

Yechiel Newhouse through the entity Noble Tower, LLC paid $26 million to Related Companies through the entity NYSandy6 Noble LLC for the 238-unit residential elevator building (D1) at 1500 Noble Avenue in Parkchester, Bronx.
The deal closed on January 18, 2024 and was recorded on January 29, 2024. The property has 265,625 square feet of built space and 43,226 square feet of additional air rights for a total buildable of 308,940 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $97 and the price per buildable square foot is $84 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 September 18, 2014, for $38 million. The signatory for Related Companies was Matthew Becker. The signatory for Yechiel Newhouse was Yechiel Newhouse. The contract date was September 29, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Yechiel Newhouse purchased six properties in five transactions for a total of $72.6 million and has no record it sold any properties over the past 24 months.
The seller Related Companies purchased eight properties in three transactions for a total of $73.3 million and sold 16 properties in 14 transactions for a total of $1.1 billion over the same time period. The former owners according to the Department of Housing Preservation and Development includes Dennis Ovalle, head officer and Lynette Davis, agent. The business entities are Simply Better Apartment Homes and Nysandy6 Noble Llc.

The property

The residential elevator building with 238 residential units in Parkchester has 265,625 square feet of built space and 43,226 square feet of additional air rights for a total buildable of 308,940 square feet according to a PincusCo analysis of city data. The parcel has frontage of 464 feet and is 274 feet deep with a total lot size of 127,136 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $15.5 million. The most recent loan totaled $24 million and was provided by New York Community Bank on June 1, 2021.

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 four DOB violations and 31 housing violations 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 one of the six commercial properties representing 265,625 square feet of the 267,825 square feet. The identified owner is Related Companies.

The majority, or 99 percent of the 267,825 square feet of built space are elevator buildings, with mixed-use buildings next occupying 1 percent of the space.

The seller

The PincusCo database currently indicates that Related Companies owned at least 178 commercial properties with 9,555 residential units in New York City with 21,530,381 square feet and a city-determined market value of $6 billion. (Market value is typically about 50% of actual value.) The portfolio has $5.1 billion in debt, with top three lenders as Wells Fargo, Carlyle Group, and Deutsche Bank respectively. Within the portfolio, the bulk, or 45 percent of the 21,530,381 square feet of built space are elevator properties, with office properties next occupying 30 percent of the space. The bulk, or 60 percent of the built space, is in Manhattan, with Bronx next at 24 percent of the space.

The buyer

The PincusCo database currently indicates that Yechiel Newhouse owned at least 38 commercial properties with 1,195 residential units in New York City with 1,193,418 square feet and a city-determined market value of $84.7 million. (Market value is typically about 50% of actual value.) The portfolio has $204.8 million in debt, with top three lenders as New York Community Bank, Santander Bank, and Investors Bank respectively. Within the portfolio, the bulk, or 59 percent of the 1,193,418 square feet of built space are elevator properties, with walkup properties next occupying 41 percent of the space. The bulk, or 64 percent of the built space, is in Bronx, with Manhattan next at 36 percent of the space.

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