Chun Lee pays $3.5M to Delshah Capital for 8-unit walkup in Boerum Hill

Chun Lee through the entity 278 Dean LLC paid $3.5 million to Delshah Capital through the entity DS Brooklyn Portfolio Owner LLC for the eight-unit residential walkup building (C1) at 278 Dean Street in Boerum Hill, Brooklyn.
The deal closed on July 6, 2023 and was recorded on July 14, 2023. The property has 8,150 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $423 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 September 21, 2018, for $3.4 million. The signatory for Delshah Capital was Michael Shah. The signatory for Chun Lee was Chun Lee.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Chun Lee had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Delshah Capital purchased two properties in two transactions for a total of $74.5 million and sold 36 properties in nine transactions for a total of $66.8 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Michael Shah, head officer and Raymond Morales, site manager. The business entities are Ds Brooklyn Portfolio Owner Llc and Ds Brooklyn Portfolio Owner Llc. The 8,150-square-foot property generated revenue of $243,115 or $30 per square foot, according to the most recent income and expense figures.

The property

The residential walkup building with 8 residential units in Boerum Hill has 8,150 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.3 million. The most recent loan totaled $70 million and was provided by Signature Bank on October 20, 2022.

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 three housing violations and $100 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

On this tax block, PincusCo has identified the owners of seven of the 11 commercial properties representing 58,595 square feet of the 162,765 square feet. The largest owner is Traina Companies, followed by Saul Mazor and then Philip Guardione.
There are no active new building construction projects on this tax block.

The majority, or 61 percent of the 162,765 square feet of built space are office buildings, with walkup buildings next occupying 34 percent of the space.

The seller

The PincusCo database currently indicates that Delshah Capital owned at least 42 commercial properties with 637 residential units in New York City with 746,906 square feet and a city-determined market value of $172.6 million. (Market value is typically about 50% of actual value.) The portfolio has $511.7 million in debt, with top three lenders as Arbor Realty Trust, Apollo Global Management, and Signature Bank respectively. Within the portfolio, the bulk, or 42 percent of the 746,906 square feet of built space are walkup properties, with elevator properties next occupying 36 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Brooklyn next at 39 percent of the space.

The buyer

The PincusCo database currently indicates that Chun Lee owned at least two commercial properties with 32 residential units in New York City with 23,495 square feet and a city-determined market value of $4.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 70 percent of the 23,495 square feet of built space are elevator properties, with walkup properties next occupying 30 percent of the space. They are all located in Brooklyn.

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