The feds auction off Chinatown building seized for illegal gambling.
Formerly home to a Chinese gambling den, the commercial building at 35-37 East Broadway in Manhattan has been purchase by the fashion designer Alberto Makali in partnership with Empire State Holdings. The property was sold at a government auction in March, for $20.2 million. Empire was represented by Joseph Rahmani’s Venture Capital Properties.
The new owners beat out a group of other bidders which included, David Zar, Kamyar Haimof and Irving Langer. The property was originally appraised at only $17 million.
The six story, multi-use building, located in Manhattan’s Chinatown, has a 4, 600 square foot basement and is currently only 40% occupied, with the third and sixth floors standing vacant. Four units on the fifth floor are also vacant. Its average rental income is $42, 689 per month.
All of the leases there are month to month, and the building was sold on condition that they all be honored by the purchaser.
The federal government seized the building last year from its previous owners, Won and Har Realty Corporation, after they were discovered to be running an illegal pai gow poker operation, as well as illegal slot machines, on the premises. The US Department of Homeland Security will receive about 65% of the sale price, with the rest going to Won and Har.
Alberto Makali, established in 1982, is a New York based clothier, concentrating on exclusive women’s apparel. Alberto Makali designs are known for their rich and vibrant color, and artistic quality. Makali’s clients include Kim Kardashian, Paris Hilton, Mary J. Blige, Vanessa Hudgens, Vanna White, Brooke Mueller, Mandy Moore, and Nicollette Sheridan
Founded in 2004, Empire Capital Holdings is a fund belonging to private real estate investors with assets under management in excess of $190, 000, 000.
Empire Capital Holdings has developed an extensive network of relationships that generate a consistent stream of off-market investment opportunities. This enables the firm to acquire assets with an attractive cost basis.
The firm sources investments via strategic relationships for off market transactions and with joint venture partners.
Its managing partner is Josh Rahmani, the founder of several companies spanning real estate, private equity, and retail. He is a seasoned professional with vast knowledge of the real estate market and a superior track record as a dealmaker and manager.