Alchemy Ventures pays $17.6M to Alcion Ventures, second of two-part sale totaling $36M

Alchemy Ventures pays $17.62 million to Alcion Ventures, in the second batch of sales for a nine-building portfolio. The total sale price over all nine properties was $36 million. Yesterday PincusCo reported on the first batch of sales, totaling $18.37 million.

The four properties with 49 units sold for a combined $17.62 million and were acquired for $13.5 million as part of $30.4 million total paid in 2015 and 2016 for 216 Macon Street, 475 Hancock Street, 1050 Lafayette Avenue and 223 Bainbridge Street.
Alcion and Alchemy as a joint venture sought to sell a nine-building portfolio including these five, for $50 million in 2019, noting it had revenue of $3.7 million annually for the 9 buildings, of which 6 were 2A/2B tax class. The partners bought the nine-building portfolio in separate transactions totaling $30.4 million in 2015 and 2016, according to a PincusCo analysis. The total group of nine properties were 216 Macon St.; 475 Hancock St.;1050 Lafayette Ave.; 788 Madison St., 790 Madison St.; 442 Decatur St.; 223 Bainbridge St.; 45 Kingston Ave. and 910 Prospect Place. The total price for all nine was $36 million. Alchemy was a joint venture partner with Alcion and it was not known what its stake was before the sale.

Prior sales and revenue

The former owner according to the Department of Housing Preservation and Development is Alexander Horn, head officer. The business entity is Av Lafayette Owner Llc. The 13,552-square-foot property generated revenue of $480,844 or $35 per square foot, according to the most recent income and expense figures.

The property

The 1050 Lafayette Avenue parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,054 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received 12 housing violations and $400 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of seven of the 16 commercial properties representing 92,010 square feet of the 135,676 square feet. The largest owner is Dunn Development, followed by Alchemy Ventures and then Yosef Emergi.
There is one active new building construction project totaling 4,997 square feet. It is a seven-unit, 4,997-square-foot R-2 building developed by David Shauolian with plans filed July 9, 2015 and permitted March 7, 2018.

The majority, or 37 percent of the 135,676 square feet of built space are walkup buildings, with elevator buildings next occupying 36 percent of the space.

Surrounding

Within a 400-foot radius of 1050 Lafayette Avenue, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, two were for major renovation including a certificate of occupancy change. They were two permits with a total initial cost of $3.9 million. The most recent of these two items was the permit on May 5, 2021 for a 14,894-square-foot R-2 building with 22 residential units at 1075 Lafayette Avenue.
Of those four items, two were loans above $5 million totaling $10.5 million. The most recent of the two was Frimy Goldberger which borrowed $5.5 million from Valley National Bank secured by the 6,500-square-foot, seven-unit mixed-use building (S5) on 61 Malcolm X Boulevard on October 12, 2021.

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