11 East 78th Street
This is a highly illiquid, generational asset trading for the first time in 79 years in the Upper East Side, one of Manhattan's most resilient and supply-constrained multifamily submarkets, lending strong locational credibility to the deal. At $1,147 PPSF and a 5.33% cap rate, the pricing is broadly in line with Upper East Side multifamily comps, though the DSCR of 0.94x signals that the property does not cover debt service at standard leverage, representing a meaningful underwriting risk for any lender. The 16-unit, pre-war asset is likely subject to rent stabilization on some or all units, which caps near-term income growth but also provides occupancy stability and supports the cap rate as a going-in yield. Broker representation by Bob Knakal, one of the most prolific NYC investment sales brokers by deal count and volume, adds credibility to pricing and process integrity. The relatively unknown buyer profile and below-1.0x DSCR are the primary credit concerns, and a lender would need strong borrower liquidity and a credible business plan to get comfortable with this deal.
Deal Stats
Parties
Seller / Landlord
Friedman family
The Friedman Family held this Upper East Side multifamily property for 79 years following their 1947 acquisition and 1948 conversion, suggesting a long-term, conservative ownership approach typical of generational NYC real estate families with deep roots in the borough's residential market.
Buyer / Tenant
Dalmazio family
The Dalmazio Family appears to be a private family investor acquiring Upper East Side multifamily assets; limited public transaction history suggests this may be one of their earlier or infrequent NYC real estate purchases, consistent with a wealth-preservation strategy rather than an active development platform.
Score Analysis
What this score means
A Grade B score indicates this deal qualifies for financing at up to 70% LTV, subject to full underwriting. Most deals at this level proceed to a term sheet within 2 business days.
Why this score
Supply-Constrained Submarket
Upper East Side's limited multifamily inventory and strong residential demand provide long-term value stability and pricing floor protection.
Generational Asset Illiquidity
79-year hold by established family demonstrates proven market resilience and suggests underlying asset quality that survived multiple market cycles.
Debt Service Coverage Shortfall
0.94x DSCR indicates the property cannot service standard leverage debt from operations alone, creating material refinance and lender risk.
Rent Stabilization Constraints
Likely rent-stabilized units cap income growth potential and limit value-add upside despite strong market fundamentals.
Opaque Buyer Profile
Limited public transaction history for Dalmazio family raises questions about liquidity depth, experience, and execution capability in stressed scenarios.
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.
Unlock Rent-Stabilized Unit Deregulation
Identify deregulation-eligible units (high-rent threshold or lease expiration timing) and model aggressive rent resets to demonstrate 6%+ yield expansion.
Establish Strong Sponsor Liquidity & Track Record
If Dalmazio family willing, publicly document personal net worth, prior real estate exits, and dedicated capital reserves to offset DSCR weakness.
Reduce Leverage or Extend Debt Terms
Model lower LTV or interest-only period to bring DSCR above 1.10x and eliminate lender coverage concerns on day-one underwriting.
