Safehold pays $27.9M to Seventh-day Adventists for dev site in Crown Heights

UPDATED: Safehold Inc. through the entity 959 Sterling Place Ground Owner LLC acquired for the price of $27.9 million from the Northeastern Conference of Seventh-day Adventists a vacant lot at 959 Sterling Place in Crown Heights, Brooklyn.
The deal closed on January 20, 2022 and was recorded on February 4, 2022. In a related transaction, Safehold as landlord signed a 99-year ground lease with the Gershon family’s Hope Street Capital as tenant, which was recorded on February 24.

PincusCo first reported on the contract between Hope Street and the church in 2019, but the price was not disclosed and at the time, the sale was expected to be completed in 2020.

In New York City, the Northeastern Conference of Seventh-day Adventists owns 79 properties with about 724,000 square feet of built space. At least ten of those properties are vacant lots. The church has signed at least three long-term ground leases with developers including Stagg Group and IMPACCT Brooklyn.

A residential development is planned for the property, according to YIMBY.  The Gershon family apart from Hope Street Capital owns large rental buildings in Manhattan and Brooklyn.

The signatory for Northeastern Conference of Seventh-day Adventists was Eldeen C. King. The signatory for the buyer, in care of Hope Street Capital, was Jeffrey Gershon.

On the tax block, the majority, or 60 percent of the 189,294 square feet of built space are 1-4 family buildings, with specialty buildings next occupying 35 percent of the space.

Correction Feb. 28, 2022, 4:15 pm: Updated with a correction that Safehold Inc. purchased the fee on Feb. 4, and then as landlord executed a ground lease with Hope Street Capital as tenant and developer.

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