Alchemy Ventures pays $18.4M to Alcion Ventures for 5 Brooklyn walkups with 62 units

Alchemy Ventures paid $18.37 million to buy out partner Alcion Ventures at 5 Brooklyn walkups with 62 units in four separate transactions. Alchemy was a joint venture partner with Alcion and it was not known what its stake was before the sale.

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 four unsold properties were acquired for $13.5 million of the $30.4 million total and are 216 Macon Street, 475 Hancock Street, 1050 Lafayette Avenue and 223 Bainbridge Street.

In the first transaction, Alchemy Ventures through the entity Ac 442 Decatur LLC paid $8.2 million to Alcion Ventures through the entity Av Decatur Owner LLC for the 32-unit residential walkup building (C1) at 442 Decatur Street in Bed Stuy, Brooklyn.
The deal closed on August 3, 2022 and was recorded on August 12, 2022.The property has 29,103 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $283 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on March 24, 2016, for $8 million. The signatory for Alcion Ventures was Eugene F. DelFavero. The signatory for Alchemy Ventures was Samuel Kooris.

In the second transaction, Alchemy Ventures through the entity Ac Madison LLC paid $6.2 million to Alcion Ventures through the entity Av Madison Owner LLC for eight-unit residential walkup building (C1) at 788 Madison Street in Bed Stuy, Brooklyn and the eight-unit residential walkup building (C1) at 790 Madison Street in Bed Stuy, Brooklyn. The deal closed on August 3, 2022 and was recorded on August 12, 2022.The two properties have 12,128 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $515 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)

In the third transaction, Alchemy Ventures through the entity Ac 910 Prospect LLC paid $2.5 million to Alcion Ventures through the entity Av Prospect Owner LLC for eight-unit residential walkup building (C1) at 910 Prospect Place in Crown Heights, Brooklyn. The deal closed on August 3, 2022 and was recorded on August 12, 2022. The property has 9,000 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $272 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)

In the fourth transaction, Alchemy Ventures through the entity Ac 45 Kingston LLC paid $1.4 million to Alcion Ventures through the entity Av Kingston Owner LLC for six-unit residential walkup building (C2) at 45 Kingston Avenue in Bed Stuy, Brooklyn. The deal closed on August 3, 2022 and was recorded on August 12, 2022.The property has 5,772 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $246 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Alchemy Ventures purchased 21 properties in 20 transactions for a total of $94.6 million and sold two properties in two transactions for a total of $7.6 million over the past 24 months.
The seller Alcion Ventures had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Alexander Horn, head officer and Sam Kooris, officer. The business entity is Av Decatur Owner Llc. The 29,103-square-foot property generated revenue of $895,798 or $31 per square foot, according to the most recent income and expense figures.

The property

The 442 Decatur Street parcel has frontage of 81 feet and is 100 feet deep with a total lot size of 8,175 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 $3.6 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 21 housing violations and $50 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 10 commercial properties representing 87,303 square feet of the 109,003 square feet. The largest owner is New Destiny Housing Corporation, followed by Alchemy Ventures and then ELH Mgmt..
There are no active new building construction projects on this tax block.

The majority, or 62 percent of the 109,003 square feet of built space are walkup buildings, with elevator buildings next occupying 26 percent of the space.

The seller

The PincusCo database currently indicates that Alcion Ventures owned at least seven commercial properties in New York City with 61,324 square feet and a city-determined market value of $8.8 million. (Market value is typically about 50% of actual value.) The portfolio has $14.5 million in debt, borrowed from Boston Private Bank & Trust Company and Silicon Valley Bank. Within the portfolio, all identified are walkup properties. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Alchemy Ventures owned at least 37 commercial properties in New York City with 325,791 square feet and a city-determined market value of $89 million. (Market value is typically about 50% of actual value.) The portfolio has $62.9 million in debt, with top three lenders as Fortress Investment Group, Citibank, and Ready Capital respectively. Within the portfolio, the bulk, or 82 percent of the 325,791 square feet of built space are walkup properties, with mixed-use properties next occupying 18 percent of the space. The bulk, or 61 percent of the built space, is in Brooklyn, with Manhattan next at 37 percent of the space.

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