BEB Capital pays $55.2M to AD Real Estate Investors for three properties in Manhattan

BEB Capital through the entity 312 East 30th, LLC paid $55.2 million to AD Real Estate Investors through the entity 153 E. 26th St., LLC for midblock 67-unit residential elevator building at 312-316 East 30th Street in Kips Bay, Manhattan, midblock property at East 30th Street in Manhattan.
The deal closed on February 17, 2022 and was recorded on March 4, 2022. The three properties have 47,820 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,155 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 AD Real Estate Investors was Abraham Daniels. The signatory for BEB Capital was Lee J. Brodsky.

Crains reported on the transaction here.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 312-316 East 30th Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer BEB Capital purchased one properties in one transaction for a total of $4.8 million and has no record it sold any properties over the past 24 months.
The seller AD Real Estate Investors 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 Adam Daniels, head officer and Aaron Daniels, officer. The business entity was 312-316 East 30th Street, Llc. Out of the three properties, one with a total of 47,820 square feet of built space generated revenue of $2.8 million per year.

The property

The 312-316 East 30th Street parcel has frontage of 62 feet and is 98 feet deep with a total lot size of 6,164 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $14.2 million.The property has a city-determined energy rating of 31 out of 100.

Violations and lawsuits

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have received two DOB violations, $38,750 in ECB 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 neighborhood

In Kips Bay, the majority, or 56 percent of the 26.9 million square feet of built space are residential elevator buildings, with specialty buildings next occupying 29 percent of the space. In sales, Kips Bay has 2.5 times the average sales volume among other neighborhoods with $688.3 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, Kips Bay has had very little major development activity relative to other neighborhoods.It had 624,586 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block of 312-316 East 30th Street, PincusCo has identified the owners of one of the 14 commercial properties representing 28,431 square feet of the 346,981 square feet. The identified owner is Algin Management. There are no active new building construction projects on this tax block.

the majority, or 61 percent of the 398,326 square feet of built space are residential elevator buildings, with specialty buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that AD Real Estate Investors owned at least two commercial properties with 34,038 square feet and a city-determined market value of $9.7 million. (Market value is typically about 50% of actual value.) The portfolio has $25.5 million in debt, borrowed from Valley National Bank. Within the portfolio, the bulk, or 77 percent of the 34,038 square feet of built space are residential elevator properties, with residential walkup properties next occupying 23 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that BEB Capital owned at least four commercial properties with 33,157 square feet and a city-determined market value of $5.9 million. (Market value is typically about 50% of actual value.) The portfolio has $25.9 million in debt, borrowed from HSBC Bank. Within the portfolio, the bulk, or 73 percent of the 33,157 square feet of built space are industrial properties, with retail properties next occupying 14 percent of the space. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 312-316 East 30th Street, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, three were loans above $5 million totaling $112 million. The most recent of the three was James Kennelly which borrowed $7 million from Investors Bank secured by one condo unit in the 8,994-square-foot, 81-unit mixed-use building (RM) on 250 East 30th Street on May 6, 2021.

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