Itzhaki Acquisitions Picks Up Midtown East Building That Is Home to Katagiri for $11.4M

After having a five-story residential Midtown East building in his family for over 50 years, Richard Klaffky has sold it to Itzhaki Acquisitions for $11.4 million, Commercial Observer has learned. The property has been home to Katagiri Japanese grocery store for decades.

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“It’s pretty typical of our acquisitions over the last three years or so,” said Elie Mansdorf, the director of acquisitions for Itzhaki. The firm, he added, has been focused on multi-family and multi-use Manhattan properties and holds them for “the long haul.”

The 11,900-square-foot residential rental walkup building at 224 East 59th Street between Second and Third Avenues is a five-story building with seven rent-stabilized apartments and nine vacant units, a source with knowledge of the deal said.

Itzhaki “will fix the rental units and rent them in a better position,” the source said.

Katagiri is in 2,300 square feet on a 10-year lease, the source said.

“They’re a great tenant,” Mr. Mansdorf said when asked if Katagiri would remain.

Venture Capital Properties‘ Itan Rahmani represented the buyer and his colleague Jeremy Aidan represented the seller in the off-market deal. They declined to comment.