Conway Capital pays $6.8M for 16-unit walkup in Park Slope

Conway Capital through the entity 566 7th Street Cc LLC paid $6.8 million to Yehuda Steinberg through the entity 566 7th Street Realty LLC for 16-unit residential walkup building (C1) at 566 7th Street in Park Slope, Brooklyn.
The deal closed on July 15, 2022 and was recorded on July 25, 2022. The property has 10,636 square feet of built space and 1,360 square feet of additional air rights for a total buildable of 12,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $634 and the price per buildable square foot is $562 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 Yehuda Steinberg was Scott A. Eisenmesser. The signatory for Conway Capital was Abe Cohen. Yehuda Steinberg was the signatory on a prior loan.

To finance the purchase, Conway Capital through the entity 566 7th Street Cc LLC as borrower signed an acquisition loan with lender Derby Copeland Capital through the entity Derby Melo 566, LLC valued at $5.8 million for the 16-unit residential walkup building (C1) at 566 7th Street in Park Slope, Brooklyn.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Conway Capital purchased 13 properties in 11 transactions for a total of $50 million and has no record it sold any properties over the past 24 months.
The seller Yehuda Steinberg had not purchased any other properties and sold one property in one transaction for a total of $3.6 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Yehuda Steinberg, head officer and David Barnett, agent. The business entities are 566 7 Street Realty Llc and 566 7 Street Realty Llc. The 10,636-square-foot property generated revenue of $440,118 or $41 per square foot, according to the most recent income and expense figures.

The property

The 566 7th Street parcel has frontage of 40 feet and is 100 feet deep with a total lot size of 4,000 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The property is in the Park Slope Historic District. The city-designated market value for the property in 2022 is $2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. 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 $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of nine of the 17 commercial properties representing 71,188 square feet of the 182,323 square feet. The largest owner is Flatiron Real Estate Advisors, followed by Ramon Maislen and then Andrew Baranetsky. There are no active new building construction projects on this tax block.

The majority, or 80 percent of the 182,323 square feet of built space are walkup buildings, with specialty buildings next occupying 20 percent of the space.

The buyer

The PincusCo database currently indicates that Conway Capital owned at least 32 commercial properties in New York City with 222,004 square feet and a city-determined market value of $69.9 million. (Market value is typically about 50% of actual value.) The portfolio has $135.2 million in debt, with top three lenders as Arbor Realty Trust, Argentic Investment Management, and Citibank respectively. Within the portfolio, the bulk, or 62 percent of the 222,004 square feet of built space are walkup properties, with mixed-use properties next occupying 30 percent of the space. The bulk, or 55 percent of the built space, is in Brooklyn, with Manhattan next at 45 percent of the space.

Direct link to Acris document. link