Asland Capital Partners pays $16.4M to L+M for seven properties in Harlem, Morrisania

Asland Capital Partners paid $16.4 million to L+M Development Partners for seven residential properties in Harlem and Morrisania in two separate transactions.

In the larger, Asland Capital Partners through the entity Hp Site 15 Housing Development Fund Company, Inc. paid $10.1 million to L+M Development Partners through the entity Site 15 Affordable Associates LLC for the 15-unit residential walkup building (C1) at 215 West 148th Street in Harlem, Manhattan, 15-unit residential walkup building (C1) at 211 West 148th Street in Harlem, Manhattan, and 16-unit residential walkup building (C1) at 209 West 148th Street in Harlem, Manhattan.
The deal closed on June 2, 2023 and was recorded on June 15, 2023. The six properties have 80,010 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $126 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 smaller, Asland Capital Partners through the entity 1090 Franklin Preservation LLC paid $6.3 million to L+M Development Partners through the entity 1090 Franklin Avenue Associates LLC for the 60-unit residential elevator building (D1) at 1090 Franklin Avenue in Morrisania, Bronx. The deal closed on June 2, 2023 and was recorded on June 15, 2023. The property has 54,560 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $115 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 signatory for L+M Development Partners was Ron Moelis. The signatory for Asland Capital Partners was James H. Simmons III.

Prior sales and revenue

The seller L+M Development Partners purchased seven properties in three transactions for a total of $59.9 million and sold six properties in six transactions for a total of $139 million over the past 24 months. The former owners according to the Department of Housing Preservation and Development includes Herminio Torres, head officer and Michael Prush, officer. The business entities are C&C Apartment Management Llc and Site 15 Affordable Associates Llc. The six properties with a total of 80,010 square feet of built space generated revenue of $1.1 million per year or $14 per square foot. The sale price per square foot was $127.

The block

On the tax block of 215 West 148th Street, PincusCo has identified the owners of 24 of the 33 commercial properties representing 338,144 square feet of the 450,013 square feet. The largest owner is West Harlem Group Associates, followed by Sharp Management and then Rhodium Capital Advisors.
There are no active new building construction projects on this tax block.

The majority, or 84 percent of the 450,013 square feet of built space are walkup buildings, with elevator buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that L+M Development Partners owned at least 218 commercial properties with 20,021 residential units in New York City with 19,536,578 square feet and a city-determined market value of $2 billion. (Market value is typically about 50% of actual value.) The portfolio has $3 billion in debt, with top three lenders as NYC Housing Development Corporation, Wells Fargo, and Barings respectively. Within the portfolio, the bulk, or 84 percent of the 19,536,578 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 46 percent of the built space, is in Brooklyn, with Manhattan next at 35 percent of the space.

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