Yong Hong Guan pays $19.1M for two walkups with 48 units in East Village

Yong Hong Guan through the entity 73-75 East 3rd Partners, LLC paid $19.1 million to Matteo Gallizio through the entity East End Associates, Inc. for the 24-unit residential walkup building (C4) at 75 East 3rd Street in East Village, Manhattan and 24-unit residential walkup building (C4) at 73 East 3rd Street in East Village, Manhattan.
The deal closed on June 28, 2022 and was recorded on July 8, 2022. The two properties have 22,071 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $863 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.)
75 East 3rd Street is adjacent to the former Hell’s Angels clubhouse at 77 East 3rd Street which sold in 2019.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 73 East 3rd Street.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes George Pavia, head officer and William Harra, officer. The business entity is East End Associates, Inc. The two properties with a total of 22,071 square feet of built space generated revenue of $1.4 million per year or $62 per square foot. The sale price per square foot was $863.

The property

The 73 East 3rd Street parcel has frontage of 25 feet and is 96 feet deep with a total lot size of 2,404 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.7 million.
The 75 East 3rd Street parcel has frontage of 25 feet and is 96 feet deep with a total lot size of 2,404 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.6 million.

Violations and lawsuits

The properties were involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $11 million commercial foreclosure concerning a loan filed on October 20, 2021, by JPMorgan Chase Bank against Giovanni R. Gallizio. In addition, according to city public data, the properties have received seven housing violations and $300 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 neighborhood

In East Village, the bulk, or 36 percent of the 19 million square feet of commercial built space are residential walkup buildings, with residential elevator buildings next occupying 28 percent of the space. In sales, East Village has 1.8 times the average sales volume among other neighborhoods with $599.1 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, East Village has had very little major development activity relative to other neighborhoods.It had 273,134 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On the tax block of 73 East 3rd Street, PincusCo has identified the owners of 21 of the 36 commercial properties representing 357,200 square feet of the 528,721 square feet. The largest owner is Caiola family, followed by Russell Cooper and then Kushner Companies. There are no active new building construction projects on this tax block.

The majority, or 49 percent of the 555,499 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 42 percent of the space.

Surrounding

Within a 400-foot radius of 73 East 3rd Street, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
One of those five items was a sale which GAIA Real Estate bought the 17,310-square-foot, 24-unit rental (C1) on 50 East 3rd Street and two other properties for $49.5 million from Anbau, Inc. on September 2, 2021.
Of those five items, four were loans above $5 million totaling $57 million. The most recent of the four was Robert Proto which borrowed $5.5 million from BCB Community Bank secured by the 11,358-square-foot, 14-unit rental (C7) on 50 2nd Avenue on November 30, 2021.

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