Hiuian Cheng pays $5M to Tidal Real Estate Partners for mixed-use in Boerum Hill

Hiuian Cheng through the entity 312 Atlantic Avenue LLC paid $5 million to Tidal Real Estate Partners through the entity 312 Atlantic Owner LLC for the mixed-use building (K4) at 312 Atlantic Avenue in Boerum Hill, Brooklyn.
The deal closed on November 3, 2023 and was recorded on November 21, 2023. The property has 20,500 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $243 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 January 24, 2017, for $10 million. The signatory for Tidal Real Estate Partners was Michael Walsdorf. The signatory for Hiuian Cheng was Hiuian Cheng. The contract date was August 15, 2023. The seller is a new company formed in 2021 that includes principals of the now-shuttered Flank, the architecture and development firm. Tidal Real Estate Partners manages the Flank fund. Another former Flank principal, Jon Kully, is a co-founder of the development firm Left Lane, launched in 2021. 

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Hiuian Cheng purchased one property in one transaction for a total of $4.5 million and sold one property in one transactions for a total of $2.7 million over the past 24 months.
The seller Tidal Real Estate Partners had not purchased any other properties and had not sold any properties over the same time period.

The property

The mixed-use building in Boerum Hill has 20,500 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 90 feet deep with a total lot size of 4,250 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $10.3 million.

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 not received any significant violations 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 neighborhood

In Boerum Hill, the bulk, or 32 percent of the 9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 16 percent of the space. In sales, Boerum Hill has near average sales volume among other neighborhoods with $339.2 million in sales volume in the last two years and is the 23rd highest in Brooklyn. For development, Boerum Hill has 1.8 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Brooklyn. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 14 of the 25 commercial properties representing 114,893 square feet of the 186,834 square feet. The largest owner is Zvi Oksenberg, followed by Sugar Hill Capital Partners and then Pietro Costa.
On the tax block, there were three new building construction projects totaling 57,129 square feet. The largest is a four-unit, 25,006 square-foot residential (R-2) building submitted by Margaret Grossman with plans filed February 6, 2019 and it has not been permitted yet. The second largest is a four-unit, 24,047 square-foot residential (R-2) building submitted by Barbara Costa with plans filed April 14, 2015 and it has not been permitted yet.

The majority, or 68 percent of the 186,834 square feet of built space are mixed-use buildings, with walkup buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Tidal Real Estate Partners owned at least two commercial properties in New York City with 2,280 square feet and a city-determined market value of $804,110. (Market value is typically about 50% of actual value.) The portfolio has $86.5 million in debt, borrowed from JPMorgan Chase and BrightSpire Capital. Within the portfolio, the bulk, or 100 percent of the 2,280 square feet of built space are mixed-use properties, with specialty properties next occupying 0 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Hiuian Cheng owned at least three commercial properties with seven residential units in New York City with 21,955 square feet and a city-determined market value of $9.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are mixed-use properties. They are all located in Manhattan.

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