Yechiel Weinberger’s Parkway Realty pays $23M to First Metropolitan for 3 Bronx rentals with 182 units

Yechiel Weinberger’s Parkway Realty Associates paid $23 million to Arnold Balsam’s First Metropolitan Properties for three Bronx multifamily elevator buildings with a total of 182 units in three separate transactions, according to city records filed today. No debt was recorded with the sales. Weinberger himself and with frequent partners including Eric Miller own stakes in approximately 90 rental buildings in the city, according to an analysis by PincusCo.
The City of New York sued Weinberger and other major landlords and their lenders in April 2022, alleging the buildings were not being maintained in good repair, among other allegations.

In the first transaction, Yechiel Weinberger’s Parkway Realty Associates through the entity Holland Industries LLC paid $9.1 million to Arnold Balsam’s First Metropolitan Properties through the entity Pelham Parkway Terrace Owners Corp. for 55-unit residential elevator building (D1) at 2206 Holland Avenue in Allerton, Bronx.
The deal closed on August 16, 2022 and was recorded on September 1, 2022.The property has 59,772 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $152 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.)

In the second transaction, Parkway Realty Associates through the entity Holland Industries LLC paid $7 million to First Metropolitan Properties through the entity Libra 730 Realty Co., LLC for 78-unit residential elevator building (D1) at 730 East 236th Street in Wakefield, Bronx.
The deal closed on August 16, 2022 and was recorded on September 1, 2022.The property has 60,968 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $113 per the PincusCo analysis.

In the third transaction, Parkway Realty Associates through the entity Holland Industries LLC paid $7 million to First Metropolitan Properties through the entity 2260 Parkview Owners Corp. for 49-unit residential elevator building (D1) at 2260 Bronx Park East in Allerton, Bronx.
The deal closed on August 16, 2022 and was recorded on September 1, 2022.The property has 53,424 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $130 per the PincusCo analysis.

The signatory for First Metropolitan Properties was Rebecca Blacker, Arnold Balsam’s daughter. The signatory for Parkway Realty Associates was Yechiel E. Weinberger. These are all of the properties Arnold Balsam is the head officer for in New York City, according to a PincusCo review.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Parkway Realty Associates purchased one property in one transaction for a total of $6.8 million and has no record it sold any properties over the past 24 months.
The seller First Metropolitan Properties had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Arnold Balsam, head officer and Rebecca Balsam Blacker, officer. The business entities are H.S.C. Manangement Corp. and Pelham Parkway Terrace Owners Corp. The 59,772-square-foot property generated revenue of $890,509 or $15 per square foot, according to the most recent income and expense figures.

The property

The 2206 Holland Avenue parcel has frontage of 100 feet and is 151 feet deep with a total lot size of 15,100 square feet. 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 $2.3 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 one DOB violation, $1,250 in ECB penalties, 95 housing violations, and $1,250 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 three of the nine commercial properties representing 103,082 square feet of the 158,928 square feet. The largest owner is Arnold Balsam, followed by Mihill Perlleshi and then George Zagreda.
There are no active new building construction projects on this tax block.

The majority, or 78 percent of the 158,928 square feet of built space are elevator buildings, with mixed-use buildings next occupying 15 percent of the space.

The buyer

The PincusCo database currently indicates that Parkway Realty Associates owned at least 19 commercial properties in New York City with 947,721 square feet and a city-determined market value of $45.6 million. (Market value is typically about 50% of actual value.) The portfolio has $111.7 million in debt, borrowed from New York Community Bank. Within the portfolio, the bulk, or 53 percent of the 947,721 square feet of built space are elevator properties, with walkup properties next occupying 47 percent of the space. The bulk, or 61 percent of the built space, is in Brooklyn, with Bronx next at 35 percent of the space.

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