Avdoo & Partners Finalizes $52M Acquisition of Upper East Side Buildings

Avdoo & Partners Development has finalized its $52 million acquisition of five buildings on the Upper East Side that have been slated for demolition since late January. 

The five buildings were acquired from Gatsby Enterprises. The transaction transferring the deeds for 1341-1347 Second Avenue and 242 East 71st Street to Shlomi Avdoo’s firm hit property records Monday following a filing with the New York City Department of Buildings indicating that the 50 units of existing housing and several retail units would be razed as part of a redevelopment.

Valley Bank provided a loan for the acquisition, according to the buyer.

Avdoo’s plans for the site were not immediately clear, but Bob Knakal Real Estate Advisors, which brokered the sale for Gatsby, said in marketing materials that the lot could yield as much as 100,417 square feet through the current zoning.

The development will blend into the “historic architectural fabric of the Upper East Side,” however, Avdoo said.

“This acquisition demonstrates our firm’s fast-paced growth as we continue to make our mark on some of New York City’s most beloved neighborhoods,” Avdoo said in a statement. “Architecture and design will be at the heart of this preeminent Upper East Side development, and we look forward to unveiling more details in the coming months.”

Isaac Ohebshalom’s Gatsby bought the properties for $27.5 million in 2008 and originally marketed them for sale for $55 million, according to Crain’s New York Business. Gatsby itself had its own plans to demolish the buildings and build a 21-story tower, but those plans never got off the ground, Crain’s reported.

Knakal declined to comment while Gasby did not immediately respond to requests for comment.

Retail tenants in the buildings included eateries Il Divo, Afghan Kebab House and Jean Claude II. The first appears to be permanently closed while the latter two have relocated nearby.

Knakal’s firm assured buyers in the listing that the properties would be passed along completely vacant and that the site qualified for 421a tax exemption, as well as offering a 10 floor area ratio (FAR) for developers, with an additional 2 FAR for those adding housing units under the Mandatory Inclusionary Housing program.

Mark Hallum can be reached at mhallum@commercialobserver.com.