David Kramer buys 49% stake for $31.2M in Joel Schwartz Bed Stuy rental

David Kramer through the entity DK Kings 1 LLC paid $31.2 million to Joel Schwartz through the entity Broadway 1884 LLC for a 49 percent stake in the 66-unit residential elevator building (D6) at 1884 Broadway in Bedford Stuyvesant, Brooklyn.
At the same time, the parties through the entity Broadway 1884 LLC as borrower signed a loan with lender Bellco Credit Union valued at $40 million.
The deal closed on March 2, 2023 and was recorded on August 2, 2023. The property has 85,917 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is approximately $724 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 February 5, 2020, for $8 million. The signatory for Joel Schwartz was Joel Schwartz. The signatory for David Kramer was David Kramer. The contract date was March 2, 2023. In this transaction, Joel Schwartz sold a 49% stake to David Kramer. Joel Schwartz has sold at least three other properties to David Kramer totaling $42 million.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer David Kramer purchased three properties in three transactions for a total of $42 million and has no record it sold any properties over the past 24 months.
The seller Joel Schwartz purchased 18 properties in 15 transactions for a total of $71.6 million and sold 26 properties in 23 transactions for a total of $233.1 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Joel Schwartz, head officer and Charles Schwartz, agent. The business entity is Broadway 1884 Llc.

The property

The residential elevator building with 66 residential units in Bedford Stuyvesant has 85,917 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 139 feet and is 74 feet deep with a total lot size of 15,843 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $8 million. The most recent loan totaled $40 million and was provided by Pacific Private Money on February 4, 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 one housing violation and $6,920 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 12 of the 18 commercial properties representing 134,629 square feet of the 157,404 square feet. The largest owner is Steve Makowsk, followed by Shaindy Schwartz and then Samuel Brettler.
There are no active new building construction projects on this tax block.

The majority, or 55 percent of the 157,404 square feet of built space are elevator buildings, with walkup buildings next occupying 36 percent of the space.

The seller

The PincusCo database currently indicates that Joel Schwartz owned at least 78 commercial properties with 944 residential units in New York City with 1,009,523 square feet and a city-determined market value of $172.8 million. (Market value is typically about 50% of actual value.) The portfolio has $909.1 million in debt, with top three lenders as BridgeCity Capital, Citibank, and Popular Bank respectively. Within the portfolio, the bulk, or 57 percent of the 1,009,523 square feet of built space are elevator properties, with walkup properties next occupying 17 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that David Kramer owned at least three commercial properties with 36 residential units in New York City with 30,328 square feet and a city-determined market value of $1.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 30,328 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Brooklyn.

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