Yoel Zagelbaum affiliate pays $12.9M to Yosef Rabinowitz for Bronx parcels

A Yoel Zagelbaum affiliate paid $12.9 million to Yosef Rabinowitz for two Bronx parcels in two separate transactions.

In the first, Yoel Zagelbaum through the entity 1790 Marmion Propco LLC paid $8 million to Yosef Rabinowitz through the entity 1790 Marmion LLC for the 13-unit specialty building (N2) at 1790 Marmion Avenue in East Morrisania, Bronx.
The deal closed on December 9, 2022 and was recorded on December 14, 2022. The property has 7,820 square feet of built space and 16,024 square feet of additional air rights for a total buildable of 23,863 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,021 and the price per buildable square foot is $334 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 16, 2016, for $1.8 million. The signatory for Yosef Rabinowitz was Yosef Rabinowitz. The signatory for Yoel Zagelbaum was Yoel Zagelbaum.

A Yoel Zagelbaum affiliate through the entity 671-673 East 231st Propco LLC paid $4.9 million to Yosef Rabinowitz through the entity 671-673 East 231 LLC for specialty building (N9) at 673 East 231st Street in Wakefield, Bronx and specialty building (N9) at 671 East 231st Street in Wakefield, Bronx. The deal closed on December 9, 2022 and was recorded on December 14, 2022. The two properties have 8,346 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $592 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 Yosef Rabinowitz was Yosef Rabinowitz. The signatory for Yoel Zagelbaum was Yoel Zagelbaum.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Yoel Zagelbaum affiliates purchased six properties in five transactions for a total of $77.5 million and has no record it sold any properties over the past 24 months.
The seller Yosef Rabinowitz purchased one properties in one transactions for a total of $12.2 million and sold two properties in one transactions for a total of $2.8 million over the same time period. The former owner according to the Department of Housing Preservation and Development is David Levitan, head officer. The business entity is 1790 Marmion Llc.

The property

The 1790 Marmion Avenue parcel has frontage of 73 feet and is 95 feet deep with a total lot size of 6,937 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $951,000.

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 $5,375 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on April 4, 2017. 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 East Morrisania, the bulk, or 43 percent of the 11.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, East Morrisania has had very little sales volume relative to other neighborhoods with $98.4 million in sales volume in the last two years. For development, East Morrisania has 1.2 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Bronx. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the eight commercial properties representing 145,515 square feet of the 207,867 square feet. The two identified owners are Aquinas Housing Corporation and Ljumni Pelinkovic.
On the tax block, there was one new building construction project filed totaling 11,890 square feet. It is a eight-unit, 11,890-square-foot I-1 building developed by Seth Coston with plans filed October 5, 2021 and it has not been permitted yet.

The majority, or 84 percent of the 207,867 square feet of built space are walkup buildings, with elevator buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Yosef Rabinowitz owned at least two commercial properties in New York City with 64,181 square feet and a city-determined market value of $4.5 million. (Market value is typically about 50% of actual value.) The portfolio has $8 million in debt, borrowed from M&T Bank. Within the portfolio, the bulk, or 69 percent of the 64,181 square feet of built space are walkup properties, with industrial properties next occupying 31 percent of the space. The bulk, or 69 percent of the built space, is in Bronx, with Queens next at 31 percent of the space.

The buyer

The PincusCo database currently indicates that Yoel Zagelbaum owned at least eight commercial properties in New York City with 151,651 square feet and a city-determined market value of $28.1 million. (Market value is typically about 50% of actual value.) The portfolio has $133.8 million in debt, with top three lenders as Mizuho Bank, Bear Creek Asset Management, and BCTH Investors respectively. Within the portfolio, the bulk, or 35 percent of the 151,651 square feet of built space are specialty properties, with N2 properties next occupying 27 percent of the space. The bulk, or 42 percent of the built space, is in Manhattan, with Bronx next at 31 percent of the space.

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