Housing Preservation, Inc. acquires interests from NHP Foundation for $32.1M in Sunset Park

Housing Preservation, Inc. acquires interests from NHP Foundation valued at $32.1 million for two properties in Sunset Park in two separate transactions.

In the first, Housing Preservation, Inc. acquired an interest from NHP Foundation through the entity Rose Gp Investors, LLC valued at $18.5M for the 80-unit residential elevator building (D9) at 405 44th Street in Sunset Park, Brooklyn.
The deal closed on November 1, 2022 and was recorded on November 4, 2022. The property has 65,048 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $284 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.)

In the second, Housing Preservation, Inc. acquired an interest from NHP Foundation through the entity Rose Gp Investors, LLC valued at $13.6M for specialty building (N2) at 5605 2nd Avenue in Sunset Park, Brooklyn. The deal closed on November 1, 2022 and was recorded on November 4, 2022. The property has 63,000 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $215 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 November 26, 2019, for $1.4 million.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Housing Preservation, Inc. had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller NHP Foundation 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 Michael Arman, head officer and John Vanmetre, agent. The business entities are Rose Community Management and Rahf Iv Sunset Gardens, Lp. The 65,048-square-foot property generated revenue of $1.5 million or $23 per square foot, according to the most recent income and expense figures.

The property

The 405 44th Street parcel has frontage of 162 feet and is 100 feet deep with a total lot size of 16,228 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $5.9 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 $50 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 one of the six commercial properties representing 4,875 square feet of the 100,667 square feet. The identified owner is Resk Ali.
There are no active new building construction projects on this tax block.

The majority, or 65 percent of the 100,667 square feet of built space are elevator buildings, with mixed-use buildings next occupying 23 percent of the space.

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