Ryco Capital Pays $29M for 64-Unit East Village Portfolio
By Abigail Nehring July 9, 2024 5:07 pm
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Tenants at a trio of rent-stabilized East Village buildings bid a less-than-fond farewell to Jonis Realty and are now getting acquainted with new landlord Ryco Capital.
New York City-based Ryco bought 127-129 Second Avenue and 36 St. Marks Place from Nathan and Joshua Halegua’s Jonis for $29 million, according to brokers Marcus & Millichap (MMI).
Jonis, which did not immediately respond to a request for comment, acquired the three buildings at the corner of Second Avenue and St. Marks Place more than two decades ago for an undisclosed amount, and put its property management firm, Citi-Urban Management, in charge, according to property records.
Conditions deteriorated since, and the properties currently have 411 housing violations racked up across its 64 apartments, according to housing records.
Tenants have sued Citi-Urban for repairs several times over the last decade and settled the cases for undisclosed amounts, according to city housing records.
Now, Ryco will put the buildings in the hands of its own property management firm, Ryco NYC, according to City Residents Alliance, a nonprofit tenant group.
Units at the properties range from one to five bedrooms, according to Marcus & Millichap. They should be in high demand since vacancy in the East Village fell to 1.8 percent earlier this year, Marcus & Millichap’s Joe Koicim, who brokered the deal along with Logan Markley, Zan Colin and Matt Berger, said in a statement.
“The East Village is a supply-constrained rental market that has consistently provided owners with higher annual rent growth than nearly every other New York City submarket,” Koicim said in a statement. “The buyer will capitalize on the long-term upside created by the natural demand for apartments and retail space in this area.”
The properties also have 10 retail units, one of which is occupied by B&H Dairy, a neighborhood institution serving vegetarian and kosher fare. Poetica Coffee occupies the corner storefront of 36 St. Marks Place, which has an alternate address of 131 Second Avenue.
A spokesperson for Ryco did not respond to a request for comment.
Abigail Nehring can be reached at anehring@commercialobserver.com.
