Buyer pays $2.9M to Lonicera, Orange, Davis for commercial condo in Brooklyn Heights

The entity 76 Schermerhorn Management LLC paid $2.9 million to Lonicera Partners, Orange Management and the Davis Companies through the entity 70 Schermerhorn Owner, LLC for commercial condos at 76 Schermerhorn Street in Brooklyn Heights, Brooklyn.
The deal closed on September 29, 2022 and was recorded on October 6, 2022. The two properties have 2,818 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,011 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 Lonicera Partners was David W. Lu.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Lonicera Partners purchased 91 properties in seven transactions for a total of $115.5 million and sold one property in one transaction for a total of $5.6 million over the same time period.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot. On the tax lot, the most recent condominium plan was filed by 70 Schermerhorn Owner LLC to create 59 residential units and 1 commercial units in a building at 70 Schermerhorn Street in Brooklyn Heights, Brooklyn, called Symon Condominium that has a $93 million sellout, according to an October 15, 2018 submission to the New York State Attorney General.The principals of the sponsor, 70 Schermerhorn Owner LLC, were Jamie Anthony, Andrew Bradfield, John Evans, and Demetrios Yatrakis.

The neighborhood

In Brooklyn Heights, the bulk, or 26 percent of the 12 million square feet of commercial built space are office buildings, with elevator buildings next occupying 22 percent of the space. In sales, Brooklyn Heights has near average sales volume among other neighborhoods with $345.9 million in sales volume in the last two years and is the 17th highest in Brooklyn. For development, Brooklyn Heights has had very little major development activity relative to other neighborhoods.It had 333,657 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On the tax block of 76 Schermerhorn Street, PincusCo has identified the owners of two of the 10 commercial properties representing 81,132 square feet of the 420,607 square feet. The two identified owners are AWH Partners and Lonicera Partners.
On the tax block, there were three new building construction projects totaling 145,877 square feet. The largest is a 59-unit, 68,537-square-foot R-2 building developed by John Evans with plans filed August 10, 2017 and permitted August 9, 2018. The second largest is a 23-unit, 39,040-square-foot R-2 building developed by Barbara Resnicow with plans filed May 22, 2015 and it has not been permitted yet.

the majority, or 75 percent of the 418,502 square feet of built space are elevator buildings, with walkup buildings next occupying 12 percent of the space.

The seller

The PincusCo database currently indicates that Lonicera Partners owned at least 13 commercial properties in New York City with 303,298 square feet and a city-determined market value of $28.1 million. (Market value is typically about 50% of actual value.) The portfolio has $176.1 million in debt, with top three lenders as Santander Bank, City National Bank, and Trans World Equities respectively. Within the portfolio, the bulk, or 62 percent of the 303,298 square feet of built space are elevator properties, with office properties next occupying 21 percent of the space. The bulk, or 98 percent of the built space, is in Brooklyn, with Queens next at 2 percent of the space.
Correction: The post was updated to remove the buyer’s personal name.

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