BSE Global pays $10.3M for One Hanson retail in Fort Greene, debt was $22M in 2018

Sports and entertainment investment company BSE Global through the entity One Hanson Retail, LLC, purchased  the retail condominium unit at 1 Hanson Place in Fort Greene, Brooklyn, for $10.3 million. The transaction occurred through a foreclosure sale. The former owners were Madison Realty Capital and Siguler Guff & Company. The debt holder was Amherst Capital Management through the entity Acm Cre Fund I-L, LP.
The deal closed on October 31, 2024 and was recorded on November 15, 2024. The property has 40,139 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $255 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 Madison Realty Capital, Siguler Guff & Company, and Amherst Capital Management was the referee Michael J. Roberts. The signatory for BSE Global was Jeffrey Gewirtz. The contract date was October 31, 2024.
Madison Realty Capital bought the unit, subject to an interior landmark as well as an exterior landmark, for $18 million in July 2015. The lender filed a pre-foreclosure action 850158/2021 in 2021 and it went to auction this year. Michael J. Roberts was the court-appointed referee.

The transfer occurred in two transactions, one was a deed for $1.9 million, in which the BSE Group entity took the property from the Madison Realty Capital entity, and in the second, an entity-level transaction, the lender Amherst Capital sold its interest for $8.3 million. Madison Realty Capital and private equity firm Siguler Guff & Company, through the entity OHP Retail Owner LLC bought the unit in 2015 for $18 million. They refinanced in 2018 with a total of $22.25 million. The loan went into default in 2020, court records show, and according to the December 2023 judgment of foreclosure and sale, and the stipulated judgment as of November 2023 was $23.8 million.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer BSE Global had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Madison Realty Capital purchased nine properties in seven transactions for a total of $311.7 million and sold 14 properties in 12 transactions for a total of $223.6 million over the same time period.

The property

The retail condo in Fort Greene has 40,139 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 40,139 square feet. The city-designated market value for the property in 2022 is $10.6 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 not received any significant violations 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 neighborhood

In Fort Greene, The bulk, or 34 percent of the 12.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 23 percent of the space. In sales, Fort Greene has 2.2 times the average sales volume among other neighborhoods with $562.6 million in sales volume in the last two years and is the 8th highest in Brooklyn. For development, Fort Greene has had very little major development activity relative to other neighborhoods.It had 602,922 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

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

The majority, or 100 percent of the 189,635 square feet of built space are specialty buildings, with industrial buildings next occupying 0 percent of the space.

The seller

The PincusCo database currently indicates that Madison Realty Capital owned at least 63 commercial properties with 2,957 residential units in New York City with 2,823,195 square feet and a city-determined market value of $388.8 million. (Market value is typically about 50% of actual value.) The portfolio has $1.5 billion in debt, with top three lenders as Signature Bank, MF1 Capital, and Elliott Investment Management respectively. Within the portfolio, the bulk, or 72 percent of the 2,823,195 square feet of built space are elevator properties, with walkup properties next occupying 12 percent of the space. The bulk, or 41 percent of the built space, is in Queens, with Manhattan next at 33 percent of the space.

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