Derby Copeland, Isaac Shamah pay $5M to Sugar Hill for 10-unit walkup in Brooklyn Heights

Derby Copeland Capital and Isaac Shamah through the entity Derby Henry The Second, LLC paid $5 million to Sugar Hill Capital Partners through the entity 268 Henry Residences, LLC for the midblock 10-unit residential walkup building at 268 Henry Street in Brooklyn Heights, Brooklyn.
The deal closed on May 12, 2022 and was recorded on June 6, 2022. The property has 6,000 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $825 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 June 20, 2017, for $4.6 million. The signatory for Sugar Hill Capital Partners was Margaret Grossman. The signatory for Derby Copeland Capital and Isaac Shamah was Jesse Hutcher. Isaac Shamah and Jesse Hutcher signed on the aquisition loan for the property.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Derby Copeland Capital purchased three properties in three transactions for a total of $13.3 million 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 four properties in four transactions for a total of $18.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes David Schorr, head officer and Doron Yaghoubi, site manager. The business entity is 268 Henry Residences, Llc.

The property

The 268 Henry Street parcel has frontage of 25 feet and is 92 feet deep with a total lot size of 2,313 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property is in the Brooklyn Heights Historic District. The city-designated market value for the property in 2022 is $2.2 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 received $130 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 $5 million on this tax lot.

The neighborhood

In Brooklyn Heights, the bulk, or 38 percent of the 21.1 million square feet of commercial built space are residential elevator buildings, with office buildings next occupying 15 percent of the space. In sales, Brooklyn Heights has had very little sales volume relative to other neighborhoods with $228.8 million in sales volume in the last two years. For development, Brooklyn Heights has had very little major development activity relative to other neighborhoods.It had 261,202 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 13 commercial properties representing 35,083 square feet of the 73,289 square feet. The largest owner is Firebird Grove, followed by Stephen Penn. There are no active new building construction projects on this tax block.

The majority, or 51 percent of the 232,488 square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Sugar Hill Capital Partners owned at least 101 commercial properties with 1,822,094 square feet and a city-determined market value of $235.1 million. (Market value is typically about 50% of actual value.) The portfolio has $145.6 million in debt, with top three lenders as Signature Bank, Citibank, and New York Community Bank respectively. Within the portfolio, the bulk, or 56 percent of the 1,822,094 square feet of built space are walkup properties, with elevator properties next occupying 34 percent of the space. The bulk, or 70 percent of the built space, is in Manhattan, with Brooklyn next at 30 percent of the space.

The buyer

The PincusCo database currently indicates that Derby Copeland Capital owned at least three commercial properties with 12,258 square feet and a city-determined market value of $12 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are mixed-use properties. The bulk, or 63 percent of the built space, is in Manhattan, with Brooklyn next at 37 percent of the space.

Surrounding

Within a 400-foot radius of 268 Henry Street, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
One of those four items was a sale which Greenbrook Partners bought the 9,000-square-foot, 18-unit rental (C1) on 269 Henry Street for $6.9 million from Raj Associates on January 15, 2021.
Of those four items, three were loans above $5 million totaling $45.5 million. The most recent of the three was Vadem Brodsky which borrowed $8.1 million from S3 Capital secured by the 0-square-foot industrial (G7) on 295 Hicks Street and two other properties on July 22, 2021.

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