Derby Copeland pays $64M for 76-unit rental in Alphabet City

Derby Copeland Capital through the entity Derby Alphabet Blues 5872, LLC paid $64 million to Janet Zinberg and Joel Zinberg through the entity 72a Realty Associates for the 76-unit residential elevator building (D6) at 58-72 Avenue A in Alphabet City, Manhattan.
The deal closed on September 12, 2022 and was recorded on September 23, 2022. The property has 79,956 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $800 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 Janet Zinberg and Joel Zinberg was Janet Zinberg. The signatory for Derby Copeland Capital was Jesse Hutcher.

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 Janet Zinberg had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development include Janet Zinberg, head officer and Joel Zinberg, officer. The business entity is 72a Realty Associates, Lp C/O Zinberg. The 79,956-square-foot property generated revenue of $3.5 million or $44 per square foot, according to the most recent income and expense figures.

The property

The 58-72 Avenue A parcel has frontage of 192 feet and is 100 feet deep with a total lot size of 19,266 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $18.6 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 two DOB violations and $2,820 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 block

On this tax block, PincusCo has identified the owners of 17 of the 33 commercial properties representing 156,247 square feet of the 426,799 square feet. The largest owner is Kushner Companies, followed by Croman Real Estate and then Bruce Ratner.
There are no active new building construction projects on this tax block.

The majority, or 62 percent of the 426,799 square feet of built space are walkup buildings, with elevator buildings next occupying 38 percent of the space.

The buyer

The PincusCo database currently indicates that Derby Copeland Capital owned at least four commercial properties in New York City with 18,258 square feet and a city-determined market value of $14.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 67 percent of the 18,258 square feet of built space are mixed-use properties, with walkup properties next occupying 33 percent of the space. The bulk, or 57 percent of the built space, is in Brooklyn, with Manhattan next at 43 percent of the space.

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