Dermot pays $142.3M to BentallGreenOak for 271-unit rental in Boerum Hill

The Dermot Company along with through the entity The Addison REIT, LLC, paid BentallGreenOak $142.35 million through the entity MEPT Addison LLC for the 271-unit rental building The Addison at 225 Schermerhorn Street in Boerum Hill, Brooklyn. The property is divided into four commercial condominium units, and all the units were sold in the transaction.

BentallGreenOak purchased the building in 2016 for $154.25 million, or an 8 percent decline in value since then. The Commercial Observer reported on the sale earlier this month, identifying JLL’s Jeffrey Julien, Rob Hinckley, Steve Rutman, Paul Spellman and Jonathan Faxon as representing the sellers in the deal.
Dermot financed the purchase with a $92.5 million acquisition loan from Capital One.

The deal closed on May 27, 2022 and was recorded on June 22, 2022. The four properties have 228,246 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $623 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 BentallGreenOak was Robert B. Edwards. The signatory for Dermot Company was Andrew Levison. The contract date was January 14, 2022.

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 BentallGreenOak purchased one properties in one transactions for a total of $24.8 million and had not sold any properties over the same time period.

The property

The property has a 421A exemption that started in 2013 and expires in 2028.

The buyer

The PincusCo database currently indicates that Dermot Company owned at least three commercial properties with 1,134,055 square feet and a city-determined market value of $223.5 million. (Market value is typically about 50% of actual value.) The portfolio has $108 million in debt, borrowed from Signature Bank. Within the portfolio, all identified are elevator properties. The bulk, or 56 percent of the built space, is in Manhattan, with Brooklyn next at 44 percent of the space.

Surrounding

Within a 400-foot radius of 236 Livingston Street, Pincusco identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, two were loans above $5 million totaling $17.6 million. The most recent of the two was Conway Capital which borrowed $11.5 million from Argentic Investment Management secured by the 5,324-square-foot, four-unit mixed-use building (K4) on 228 Livingston Street and three other properties on June 2, 2021.

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