85 Ludlow Street
This is a modestly priced mixed-use acquisition in the Lower East Side at $299 PPSF and $118,182 per unit, which appears in line with or slightly below recent comparable sales for rent-stabilized mixed-use product in the submarket. However, the deal presents notable underwriting concern: the Traded calculator implies a DSCR of only 0.94x at standard financing assumptions, meaning the property does not cover its debt service at current income levels, a meaningful red flag for a lending scenario. The cap rate of 5.33% is relatively thin for a 22-unit walk-up with retail in a mixed-income neighborhood that still carries execution and regulatory risk. Gorjian Real Estate Group brings credible institutional-quality deal volume and local market knowledge, which partially offsets concerns, but the thin cash flow and below-1.0x DSCR would require conservative LTV structuring or strong sponsor liquidity to warrant confidence. The Lower East Side market maintains moderate transaction liquidity for this asset class, but rent-stabilization constraints and limited upside on the residential side temper the risk-adjusted return profile.
Deal Stats
Parties
Seller / Landlord
Tom's Real Estate
Tom's Real Estate appears to be a smaller, private family-owned real estate holding entity with limited public transaction history; the name suggests a mom-and-pop operator consistent with long-term ownership of legacy Lower East Side mixed-use buildings.
Buyer / Tenant
Gorjian Real Estate Group
Gorjian Real Estate Group is a NYC-based private real estate investment firm with an established track record of acquiring value-add and stabilized multifamily and mixed-use properties across the five boroughs, particularly in transitional and gentrifying neighborhoods. They are known for repositioning rent-regulated assets and have a sizable portfolio concentrated in Manhattan and Brooklyn.
Score Analysis
Why this score
Substandard Debt Service Coverage
The 0.94x DSCR indicates the property cannot service debt from operating income, creating refinancing risk and limiting leverage options.
Buyer Sponsor Quality
Gorjian Real Estate Group's institutional track record in value-add multifamily and rent-stabilized assets provides execution credibility and local expertise.
Rent Stabilization Constraints
Regulatory limits on residential rate growth severely constrain upside potential and limit value-add repositioning opportunities on 80%+ of the unit mix.
Market-Rate Pricing with Execution Risk
At $299/SF, pricing aligns with comps but offers minimal margin for error given thin cap rate and mixed-income neighborhood volatility.
Established LES Submarket Liquidity
Lower East Side maintains moderate exit liquidity for this asset class, though buyer pool is concentrated among specialized operators.
How to improve
The following actions could meaningfully improve this deal's Homage score. Each suggestion is based on the deal's profile, asset type, and current rating — addressing them before approaching a lender can increase approval likelihood and lower borrowing costs.
Increase operating income through retail rate optimization
Market-rate reset on ground-floor retail and potential ground-floor repositioning could materially improve DSCR toward 1.1x+ breakeven.
Restructure financing with lower LTV or extended amortization
Reducing debt load to achieve 1.05x+ DSCR or securing 30-year amortization would eliminate lender friction and improve investor confidence.
Document rent-stabilization lease expiration roadmap
Clear timeline showing which units roll off rent stabilization over 5-10 years unlocks visible upside narrative and de-risks portfolio perception.
Raw Deal Textclick to expand
Submit Deals New York Mixed Use Sale 85 Ludlow Street Gorjian Real Estate Group Purchases Mixed-Use Asset On Ludlow Street For $2.6 Million SOLD $2,600,000 + 1 Mixed-use 8,680 SF Sold 2 weeks ago the deal players comps contact related Summary NEW YORK Asset Type: Price Per Square Foot: $299 Total Square Footage: Transaction Type: The property asset involved in the transaction is located at 85 Ludlow Street in the Lower East Side market. It is a mixed-use property comprising 2 stores. The sale price for the property was $2,600,000, and it includes 22 units. The total square footage of the asset is 8,680, resulting in a price per unit of $118,182 and a price per square foot of $299. Summary of transaction details: Property Type: Mixed-use (2 Stores) Transaction Amount: $2,600,000 Buyer: Gorjian Real Estate Group Seller: Tom's Real Estate Brokers: Adam Lobel, Zachary Ziskin, Justin Zeitchik & Christian Ingenito - Investment Property Realty Group Units: 22 Square Footage: 8,680 Price per Unit: $118,182 Price per Square Foot: $299 Key individuals in the deal include Gorjian Real Estate Group as the buyer and Tom's Real Estate as the seller. The brokers representing the transaction are from Investment Property Realty Group, specifically Adam Lobel, Zachary Ziskin, Justin Zeitchik, and Christian Ingenito. See More Players All Brokers Buyers | Sellers Adam Lobel 136 deals $580.9M volume (314) 920-8639 BROKER Justin Zeitchik 50 deals $254.9M volume (718) 360-8827 Zachary Ziskin 37 deals $200.1M volume (646) 872-0121 Christian Ingenito 7 deals $27.7M volume (718) 416-6132 GG Gorjian Real Estate Group BUYER Details Deal Summary IMAGE: Adam Lobel, Zachary Ziskin, Justin Zeitchik & Christian Ingenito DATE: 5/12/2026 ADDRESS: 85 Ludlow Street MARKET: Lower East Side ASSET TYPE: Mixed-use (2 Stores) BUYER: Gorjian Real Estate Group SELLER: Tom's Real Estate BROKERS: Adam Lobel (@AdamLobelRealEstate), Zachary Ziskin (@Zacharyz_IPRG), Justin Zeitchik (@Jigga1216) & Christian Ingenito (@CPI.NYC) - Investment Property Realty Group (@IPRG_NY) SALE PRICE: $2,600,000 UNITS: 22 ~ PPU: $118,182 SF: 8,680 ~ PPSF: $299 Email New York | @tradedny Contact Get in touch with the broker you want Select Brokers Zachary Ziskin, Justin Zeitchik, Adam Lobel, Christian Ingenito Name Phone (optional) Message I'm an agent These are similar buyers of Mixed-use properties in this Unlock All Profiles Unlimited deal views Access investor profiles & contacts Exclusive comps & market data These are similar brokers based on this deal Enter any address to instantly view nearby comps, investors, brokers, lenders, and a visual map. NEW! Search No recent news available for this market No active listings available for this market Suggestions Analyze deals based on income, expenses, and financing. We automatically filled the calculator with data from the deal you are viewing, fill free to modify it to see how it affects the results. Deal Type SALE LOAN LEASE Purchase Price Loan-to-Value (%) Interest Rate (%) Amortization Period 30 years Loan Term 10 years Operating Income Gross Potential Rent (Annual) Vacancy Rate (%) Operating Expenses (Annual) Property Tax Insurance Maintenance Utilities Management Reserves Reset Net Operating Income (NOI) $138,666.67 Debt Service Coverage Ratio (DSCR) 0.94x DSCR below 1.0x - deal does not cover debt service Cap Rate 5.33% Cash Flow (Annual) -$9,237.24 Cash-on-Cash Return -1.27% Monthly Debt Service $12,325.33 Annual Debt Service $147,903.92 Is there something missing? Send suggestions We are telling CRE's story Traded is the #1 source for cutting edge CRE transactions & insights. States National Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming News Agents Agencies About About Us FAQ Testimonials Help Help Center Return Policy © 2026 Traded Media LLC . All rights reserved. Terms & Conditions Privacy Disclaimer Cookie Policy Do Not Sell My Info Acceptable Use