Here’s what the $10M-$30M NYC investment sales market looked like last week

A developer snatched up a Harlem church and neighboring building for $16M
By Mary Diduch |
Research by Nicholas Severin
June 19, 2019 09:45AM

From left: 249 Broome Street, 135-145 West Kingsbridge Road, and 1975 Madison Avenue with Azimuth Development Group president Guido Subotovsky (Credit: Google Maps)

From left: 249 Broome Street, 135-145 West Kingsbridge Road, and 1975 Madison Avenue with Azimuth Development Group president Guido Subotovsky (Credit: Google Maps)

From a church to a slew of apartment buildings, here’s a snapshot of last week’s mid-market investment sales transactions in the world of New York City commercial real estate.

1.) In the Lower East Side, 249 Broome Street — a 235-unit, seven-story multifamily building that sits between Orchard and Ludlow streets — traded for $22.5 million. The buyer was an entity with Mitchell B. Modell, also known as the chief of Modell’s Sporting Goods, as manager, and took on the $6.2 million debt remaining on the property from New York Community Bank. Seller Broome Partners LLC bought the property in 2013 for $12.3 million. The deal comes as the Modell family earlier this month purchased a Midtown office building with the Brodsky family for $60.5 million.

2.) VRV Corporation sold two adjacent, five-story mixed-use buildings at 213 and 215 First Avenue, at the corner of East 13th Street in the East Village, for $19.65 million. The corporation had owned the buildings, which have 28 apartments combined, for decades. The buyers were two limited liability companies that listed Abraham Sanieoff as manager, property records show. First Republic Bank loaned $11.3 million for the purchase. Entities tied to Sanieoff recently picked up two other properties in the Lower East Side.

3.) The Morgan Group parted with a 79,000-square foot walk-up mixed-use building at 135-145 West Kingsbridge Road in the Bronx’s Kingsbridge Heights/Jerome Park section to an entity that property records show investor Ignacio Castillo as its managing member. The price was $16.25 million — about $206 per square foot — for the six-story building, which dates to 1922. The property has 58 apartments and nine retail stores and sold at a 5.4 percent cap rate, according to Aaron Jungreis’ Rosewood Realty Group, which represented both parties in the deal. The Morgan Group had picked up the building in 2015 for $14.75 million, property records show.

4.) Guido Subotovsky’s Azimuth Development Group and Round Square Development shelled out $16 million for a church and neighboring commercial structure in Central Harlem from the Metropolitan Community United Methodist Church. The address for the 19th-century-era church is 1975 Madison Avenue, which stands at the corner of East 126th Street. The other property in the transaction was 45 East 126th Street, the three-story brownstone next door to the church. Demolition permits already have been filed for the site. Subotovsky has redeveloped other church properties around the city, but the developer told The Real Deal that plans have yet to be finalized for the Central Harlem site.