BFC Partners signs $34M, 99-year lease with NYCHA for 634 units in Port Richmond

BFC Partners through the entity West Brighton Partners LLC signed a 99-year ground lease valued at $34 million with the New York City Housing Authority for the 634 units spread among 17 residential elevator buildings (D3) at 159 Alaska Street in Port Richmond, Staten Island. The expected use is cash flowing.
The deal closed on June 28, 2024 and was recorded on December 30, 2024. The property has 550,010 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $61 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 New York City Housing Authority was Jonathan Gouveia. The signatory for BFC Partners was Donald Capoccia. This is a 99-year ground lease.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer BFC Partners had purchased any other properties and sold two properties in two transactions for a total of $366 million over the past 24 months.
The seller New York City Housing Authority purchased 10 properties in two transactions for a total of $151.5 million and sold 215 properties in seven transactions for a total of $324.5 million over the same time period.

The property

The residential elevator building with 634 residential units in Port Richmond has 550,010 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 768 feet and is 784 feet deep with a total lot size of 550,992 square feet. The lot is irregular. The zoning is R3-2 which allows for up to 0.5 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $24.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation, 12 housing violations, and $250 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 $1 million on this tax lot.

The block

There are no active new building construction projects on this tax block.

The majority, or 99 percent of the 556,510 square feet of built space are elevator buildings, with industrial buildings next occupying 1 percent of the space.

The seller

The PincusCo database currently indicates that New York City Housing Authority owned at least 556 commercial properties with 162,099 residential units in New York City with 135,197,904 square feet and a city-determined market value of $11.5 billion. (Market value is typically about 50% of actual value.) The portfolio has $79.3 million in debt, borrowed from Breaking Ground. Within the portfolio, the bulk, or 97 percent of the 135,197,904 square feet of built space are elevator properties, with walkup properties next occupying 3 percent of the space. The bulk, or 34 percent of the built space, is in Manhattan, with Brooklyn next at 31 percent of the space.

The buyer

The PincusCo database currently indicates that Bfc Partners owned at least seven commercial properties with 416 residential units in New York City with 482,762 square feet and a city-determined market value of $25.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 81 percent of the 482,762 square feet of built space are elevator properties, with specialty properties next occupying 16 percent of the space. The bulk, or 87 percent of the built space, is in Brooklyn, with Manhattan next at 13 percent of the space.

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