Dermot Company pays $45.5M to Azora Exan for 84-unit rental in Boerum Hill

Dermot Company through the entity 316 Bergen Owner, LLC paid $45.5 million to Azora Exan through the entity 316 Bergen Street LLC for the 84-unit residential elevator building (D3) at 316 Bergen Street in Boerum Hill, Brooklyn.

Dermot Company through the entity 316 Bergen Owner, LLC as borrower signed a acquisition loan with lender Azora Exan through the entity 316 Bergen Street LLC valued at $35 million for the 84-unit residential elevator building (D3) at 316 Bergen Street in Boerum Hill, Brooklyn.
The deal closed on October 19, 2022 and was recorded on October 20, 2022. The property has 69,998 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $649 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 December 12, 2014, for $52.2 million. The signatory for Azora Exan was Douglas Gladstone. The signatory for Dermot Company was Spencer Hodes. Azora Exan is a joint venture of European Azora Capita and Florida-based Exan Capital  Thania M. Potosme was identified as an official with Azora Exan.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Dermot Company purchased one properties in one transactions for a total of $180 million and has no record it sold any properties over the past 24 months.
The seller Azora Exan 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 includes Calynne Oyolokor, head officer and Eric Yoskowitz, agent. The business entities are Firstservice Residential and 316 Bergen Street LLC. The 69,998-square-foot property generated revenue of $4.1 million or $58 per square foot, according to the most recent income and expense figures.

The property

The 316 Bergen Street parcel has frontage of 100 feet and is 150 feet deep with a total lot size of 15,000 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The property has a 421a exemption that started in 2013 and expires in 2028. The city-designated market value for the property in 2022 is $21.5 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

For the tax lot building, it received its initial certificate of occupancy on June 6, 2014. 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 five of the 22 commercial properties representing 38,068 square feet of the 196,607 square feet. The largest owner is Jonathan Holman, followed by Frank Picone and then Ernest Schemitsch.
On the tax block, there were two new building construction projects totaling 27,326 square feet. The largest is a 28-unit, 19,839-square-foot R-2 building developed by Posner Abraham with plans filed August 5, 2020 and permitted November 12, 2021. The second largest is a seven-unit, 7,487-square-foot R-2 building developed by Sharif Khwaja with plans filed June 8, 2018 and permitted July 25, 2019.

the majority, or 49 percent of the 196,607 square feet of built space are elevator buildings, with walkup buildings next occupying 36 percent of the space.

The buyer

The PincusCo database currently indicates that Dermot Company owned at least 24 commercial properties in New York City with 3,342,049 square feet and a city-determined market value of $913.9 million. (Market value is typically about 50% of actual value.) The portfolio has $494.6 million in debt, with top three lenders as Helaba, Signature Bank, and Capital One respectively. Within the portfolio, the bulk, or 51 percent of the 3,342,049 square feet of built space are elevator properties, with rental condo properties next occupying 37 percent of the space. The bulk, or 60 percent of the built space, is in Manhattan, with Brooklyn next at 28 percent of the space.

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