Yosef Nazar pays $10M for Garment District building, adds to growing portfolio

Yosef Nazar through the entity 124 West 36th Street Assets LLC paid $10 million to Alan Mandelbaum through the entity Dosol Corporation for the 28,000-square-foot office and retail building (O6) at 124 West 36th Street in the Garment District, Manhattan.
The deal closed on May 3, 2024 and was recorded on May 7, 2024. The sale price per built square foot is $357 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 Alan Mandelbaum was Alan Mandelbaum. The signatory for Yosef Nazar was Yosef Nazar. The contract date was January 10, 2024.

To finance the purchase, Nazar borrowed $5 million from Bank of America.

William J. Mandelbaum bought the building in January 1981.

Yosef Nazar owns at least four other buildings in the neighborhood, but none adjacent to this one. In October 2019, he paid $9.7 million for 269 West 39th Street, and in May 2023, through the entity 130 West 37th Street Assets LLC as borrower, Nazar signed a refi loan with lender Bank Hapoalim valued at $12 million for three properties including the office and retail building (O6) at 36 West 36th Street in Garment District, Manhattan, office building (O5) at 130 West 37th Street in Garment District, Manhattan, and retail building (K2) at 976 Sixth Avenue in Garment District, Manhattan.

The property

The retail building in Garment District has 28,000 square feet of built space and 13,120 square feet of additional air rights for a total buildable of 41,130 square feet according to a PincusCo analysis of city data. The parcel has frontage of 41 feet and is 98 feet deep with a total lot size of 4,113 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $2.5 million.

Prior sales and revenue

The 28,000-square-foot property generated revenue of $748,576 or $27 per square foot, according to the most recent income and expense figures.

Development

Over the past five years, there has been no NYC Department of Buildings new building, demolition, or alteration permit application valued at more than $20,000 filed for this parcel.

Violations and lawsuits

According to city public data, the property has received $1,250 in ECB penalties and $2,690 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Garment District, The majority, or 69 percent of the 51.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has near average sales volume among other neighborhoods with $472.1 million in sales volume in the last two years and is the 18th highest in Manhattan. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 7.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 13 commercial properties representing 1,279,513 square feet of the 1,700,783 square feet. The largest owner is Adams & Company, followed by Empire State Realty Trust and then Falcon Properties. There are no active new building construction projects on this tax block.

The surrounding

Within a 400-foot radius of 126 West 36 Street, PincusCo identified six commercial real estate items of interests occurred over the past 24 months. One of those six items was a sale which Jia Lin Pan bought the 10,395-square-foot, five-unit office building (O5) on 150 West 36th Street for $6.5 million from Falcon Properties on August 31, 2023. Of those six items, five were loans above $5 million totaling $211.8 million. The most recent of the five was Jenel Management in which borrowed $23.8 million from Bank of America secured by the 76,804-square-foot, two-unit office building (O5) on 1352 Broadway on December 29, 2023.

Correction: a prior version of this post used an incorrect sale price, $47 million, in the body of the article. The sale price, as stated in the headline, is $10 million.

Direct link to the property’s ACRIS page and link to DOB NOW portal.