Yehuda Cohen pays $5.5M for industrial in Mott Haven

Yehuda Cohen through the entity Navon, Inc paid $5.5 million to Zvi Sebrow through the entity Worbes Corporation for the corner industrial building at 815 East 135th Street in Mott Haven, Bronx.
The deal closed on May 26, 2022 and was recorded on June 21, 2022. The property has 38,186 square feet of built space for a total buildable of 38,186 square feet according to PincusCo analysis of city data. The sale price per built square foot is $144 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 Zvi Sebrow was Zvi Sebrow. The signatory for Yehuda Cohen was Yehuda Cohen.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Yehuda Cohen purchased one properties in one transactions for a total of $10.2 million and sold four properties in four transactions for a total of $23 million over the past 24 months.
The seller Zvi Sebrow had not purchased any other properties and had not sold any properties over the same time period. The 38,186-square-foot property generated revenue of $680,677 or $18 per square foot, according to the most recent income and expense figures.

The property

The 815 East 135th Street parcel has frontage of 95 feet and is 202 feet deep with a total lot size of 19,093 square feet. The lot is irregular. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $3 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $5.5 million judgment concerning a ownership filed on January 14, 2022, by Zvi Sebrow against Betty Sebrow. In addition, according to city public data, the property has received four DOB violations 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 neighborhood

In Mott Haven, the bulk, or 38 percent of the 43.4 million square feet of commercial built space are residential elevator buildings, with industrial buildings next occupying 23 percent of the space. In sales, Mott Haven has 2.7 times the average sales volume among other neighborhoods with $744 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven is the 7th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The majority, or 83 percent of the 212,192 square feet of built space are industrial buildings, with specialty buildings next occupying 17 percent of the space.

The buyer

The PincusCo database currently indicates that Yehuda Cohen owned at least 53 commercial properties with 271,997 square feet and a city-determined market value of $54 million. (Market value is typically about 50% of actual value.) The portfolio has $18.4 million in debt, borrowed from JPMorgan Chase and Spencer Savings Bank. Within the portfolio, the bulk, or 82 percent of the 271,997 square feet of built space are walkup properties, with mixed-use properties next occupying 10 percent of the space. The bulk, or 91 percent of the built space, is in Brooklyn, with Manhattan next at 7 percent of the space.

Surrounding

Within a 400-foot radius of 815 East 135th Street, PincusCo identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, two were loans above $5 million totaling $21.7 million. The most recent of the two was Namdar Realty Group, H Holding Group, and Klosed Properties which borrowed $6.7 million from Preferred Bank secured by the 27,000-square-foot, one-unit industrial (F9) on 749 East 135th Street on April 28, 2022.

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