HUBB NYC pays $18.8M to UBS fund for 46-unit rental in Harlem

HUBB NYC through the entity Adam Clayton Blvd LLC paid $18.8 million to UBS Realty Investors through the entity 2130 ACP Boulevard Investors, LLC for the 46-unit residential elevator building (D7) at 2130 Adam C Powell Boulevard in Harlem, Manhattan. This is the assignment and sale of an existing ground lease. HUBB NYC is now the new tenant under the ground lease.
The deal closed on August 9, 2023 and was recorded on August 23, 2023. The property has 72,957 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $257 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 UBS Realty Investors was Thomas Pierandi. The signatory for HUBB NYC was John P. McCarthy and Steve Dluzyn.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer HUBB NYC purchased 34 properties in 16 transactions for a total of $590.5 million and has no record it sold any properties over the past 24 months.
The seller UBS Realty Investors had not purchased any other properties and sold four properties in four transactions for a total of $154 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Kevin Hamel, head officer and Eric Salisbury, officer. The business entities are Grep Atlantic and 2130 Acp Boulevard Investors Llc.

The property

The residential elevator building with 46 residential units in Harlem has 72,957 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 80 feet deep with a total lot size of 11,790 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property has a 421a exemption that started in 2012 and expires in 2037. The city-designated market value for the property in 2022 is $8.8 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

For the tax lot building, it received its initial certificate of occupancy on August 28, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of four of the 12 commercial properties representing 141,230 square feet of the 248,435 square feet. The largest owner is New York City Department Of Housing Preservation And Development, followed by Lemor Development Group and then City Of New York.
On the tax block, there was one new building construction project filed totaling 2,767 square feet. It is a two-unit, 2,767 square-foot residential (R-2) building submitted by Joseph Nehmadi with plans filed November 7, 2014 and permitted December 31, 2018.

The majority, or 44 percent of the 248,435 square feet of built space are elevator buildings, with specialty buildings next occupying 36 percent of the space.

The seller

The PincusCo database currently indicates that UBS Realty Investors owned at least two commercial properties in New York City with 881,610 square feet and a city-determined market value of $340.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 98 percent of the 881,610 square feet of built space are office properties, with retail properties next occupying 2 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that HUBB NYC owned at least 51 commercial properties with 1,356 residential units in New York City with 939,014 square feet and a city-determined market value of $344.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 62 percent of the 939,014 square feet of built space are elevator properties, with walkup properties next occupying 36 percent of the space. The bulk, or 66 percent of the built space, is in Manhattan, with Brooklyn next at 34 percent of the space.

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