Cedarbridge Management pays $6.1M to Sugar Hill Capital Partners for 35-unit rental elevator in Harlem

Cedarbridge Management through the entity 617 Tyhum LLC paid $6.1 million to Sugar Hill Capital Partners through the entity 617 West 143rd Owner, LLC for the 35-unit residential elevator building (D1) at 617 West 143rd Street in Harlem, Manhattan.
The deal closed on January 31, 2023 and was recorded on February 2, 2023.The property has 33,190 square feet of built space and 11,925 square feet of additional air rights for a total buildable of 45,150 square feet according to PincusCo analysis of city data. The sale price per built square foot is $183 and the price per buildable square foot is $135 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 seller bought the property on December 10, 2018, for $15.1 million. The signatory for Sugar Hill Capital Partners was Jeremy Salzberg. The signatory for Cedarbridge Management was Rachel Posen. The DOS process address for the buyer is at the office of Moshe Grunzweig’s Cedarbridge Management.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Cedarbridge Management had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Sugar Hill Capital Partners had not purchased any other properties and sold 20 properties in 20 transactions for a total of $70.1 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Scott Castellano, head officer and Doron Yaghoubi, site manager. The business entity is 617 West 143rd Owner Llc. The 33,190-square-foot property generated revenue of $835,504 or $25 per square foot, according to the most recent income and expense figures.

The property

The 617 West 143rd Street parcel has frontage of 75 feet and is 99 feet deep with a total lot size of 7,500 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.2 million.The most recent loan totaled $16.8 million and was provided by Signature Bank on October 29, 2021.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $16.8 million commercial foreclosure concerning a loan filed on November 18, 2022, by Signature Bank against Sugar Hill Capital Partners. In addition, according to city public data, the property has received one DOB violation, $6,875 in ECB penalties, 28 housing violations, $7,225 in OATH penalties, and one housing litigation 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 block

On this tax block, PincusCo has identified the owners of three of the five commercial properties representing 164,020 square feet of the 247,384 square feet. The two identified owners are Sugar Hill Capital Partners and Stellar Management.
there are no active new building construction projects on this tax block.

all properties are elevator.

The seller

The PincusCo database currently indicates that Sugar Hill Capital Partners owned at least 84 commercial properties in New York City with 1,642,660 square feet and a city-determined market value of $205.8 million. (Market value is typically about 50% of actual value.) The portfolio has $150.9 million in debt, with top three lenders as Signature Bank, Citibank, and New York Community Bank respectively. Within the portfolio, the bulk, or 52 percent of the 1,642,660 square feet of built space are walkup properties, with elevator properties next occupying 37 percent of the space. The bulk, or 72 percent of the built space, is in Manhattan, with Brooklyn next at 28 percent of the space.

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