Namdar, Klosed pay $3.5M for residential walkup in Hell’s Kitchen

Namdar Realty Group, Klosed Properties, and Troy Kordvani through the entity 666 9th Bh LLC paid $3.5 million to Angelo Vita, Vincenzina Vita, Lina Zullo, and John Rossillo through the entity J & L Management Company Of New York LLC for midblock eight-unit residential walkup building at 666 9th Avenue in Hell’s Kitchen, Manhattan.
The deal closed on April 4, 2022 and was recorded on April 20, 2022.

The property has 7,995 square feet of built space and 3,332 square feet of additional air rights for a total buildable of 11,335 square feet according to PincusCo analysis of city data. The sale price per built square foot is $437 and the price per buildable square foot is $308 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 Angelo Vita, Vincenzina Vita, Lina Zullo, and John Rossillo was Angelo Vita, Vincenzina Vita, Lina Zullo, and John Rossillo. The signatory for Namdar Realty Group, Klosed Properties, and Troy Kordvani was Igal Namdar, Steven Kashanian, and Troy Kordvani.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Namdar Realty Group purchased 14 properties in 11 transactions for a total of $169.7 million and has no record it sold any properties over the past 24 months.
The seller Angelo Vita 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 John Lina Mgmt Rossillo, joint owner and Angelo Vita, joint owner. The 7,995-square-foot property generated revenue of $351,460 or $44 per square foot, according to the most recent income and expense figures.

The property

The 666 9th Avenue parcel has frontage of 26 feet and is 74 feet deep with a total lot size of 1,883 square feet. The lot is irregular. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $5.1 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 not received any significant 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 Hell’s Kitchen, the bulk, or 39 percent of the 45 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Hell’s Kitchen has 3.5 times the average sales volume among other neighborhoods with $972.1 million in sales volume in the last two years and is the 13th highest in Manhattan. For development, Hell’s Kitchen has 1.3 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Manhattan. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 12 of the 52 commercial properties representing 101,895 square feet of the 744,988 square feet. The largest owner is Brusco Group, followed by Julian Romano and then Zhong Zhen Shi. There are no active new building construction projects on this tax block.

The majority, or 47 percent of the 738,936 square feet of built space are hotel buildings, with residential walkup buildings next occupying 31 percent of the space.

The buyer

The PincusCo database currently indicates that Namdar Realty Group owned at least 18 commercial properties with 458,495 square feet and a city-determined market value of $121 million. (Market value is typically about 50% of actual value.) The portfolio has $126.2 million in debt, with top three lenders as Benefit Street Partners, Signature Bank, and Ladder Capital respectively. Within the portfolio, the bulk, or 42 percent of the 458,495 square feet of built space are office properties, with residential elevator properties next occupying 26 percent of the space. The bulk, or 86 percent of the built space, is in Manhattan, with Brooklyn next at 8 percent of the space.
The PincusCo database currently indicates that Klosed Properties owned at least 10 commercial properties with 105,465 square feet and a city-determined market value of $25.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 83 percent of the 105,465 square feet of built space are residential walkup properties, with hotel properties next occupying 12 percent of the space. The bulk, or 55 percent of the built space, is in Brooklyn, with Manhattan next at 28 percent of the space.

Surrounding

Within a 400-foot radius of 666 9th Avenue, PincusCo identified 13 commercial real estate items of interests occurred over the past 24 months.
Of those 13 items, three were for major renovation including a certificate of occupancy change. They were three permit applications with a total initial cost of $2.3 million. The most recent of these three items was the filing on January 10, 2022 for a 4,057-square-foot A-2 building with zero residential units at 674 9th Avenue.
Of those 13 items, two were sales above $5 million totaling $10.4 million. The most recent of the two was 670 9th Avenue LLC which bought the 8,010-square-foot, 10-unit rental (C7) on 670 9th Avenue for $5 million from Piao Chu Lin on March 18, 2022.
Of those 13 items, eight were loans above $5 million totaling $89.9 million. The most recent of the eight was Mario Arcari which borrowed $5.7 million from Maspeth Federal Savings and Loan Association secured by the 8,635-square-foot, nine-unit rental (C7) on 659 9th Avenue on March 18, 2022.

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