HUBB NYC pays $76.8M to Slate, Adam America for 130-unit rental in Williamsburg

HUBB NYC through the entity 120-150 Union Ave LLC paid $76.8 million to Slate Property Group and Adam America Real Estate through the entity 120 Union Asset LLC for the 130-unit residential elevator building (D6) at 150 Union Avenue, with an alternate address of 120 Union Avenue, in Williamsburg, Brooklyn.
The deal closed on August 1, 2022 and was recorded on August 9, 2022.
The seller bought the property on September 4, 2014, for $15.5 million, then constructed the building. The signatory for Slate Property Group and Adam America Real Estate was Jay Levinton. The signatories for HUBB NYC was Jesse Terry and John P. McCarthy.
The Real Deal reported that the property has a 421a tax abatement, a program that expired in June, and that Bob Knakal of JLL led a team that brokered the sale.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer HUBB NYC purchased 32 properties in 15 transactions for a total of $476.5 million and has no record it sold any properties over the past 24 months.
The seller Slate Property Group purchased 12 properties in 11 transactions for a total of $384.7 million and sold two properties in two transactions for a total of $27 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Dvir Chen Hoshen, head officer and Hunter Reisel, agent. The business entities are Choice Ny Management and 120 Union Asset Llc. The 70,176-square-foot property generated revenue of $4.9 million or $70 per square foot, according to the most recent income and expense figures.

The property

The 150 Union Avenue parcel has frontage of 214 feet and is 266 feet deep with a total lot size of 26,000 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 property has a 421A exemption that started in 2020 and expires in 2035. The city-designated market value for the property in 2022 is $16 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 $100 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 1, 2018. 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 three of the six commercial properties representing 102,980 square feet of the 122,382 square feet. The largest owner is Adam America Real Estate, followed by Isac Deutsch and then Southside United H.D.F.C..
There are two active new building construction projects totaling 28,429 square feet. The largest is a six-unit, 14,929-square-foot R-2 building developed by David Zheng with plans filed September 11, 2014 and it has not been permitted yet. The second largest is a 14-unit, 13,500-square-foot R-2 building developed by David Zheng with plans filed April 9, 2015 and permitted October 17, 2017.

The majority, or 93 percent of the 122,382 square feet of built space are elevator buildings, with walkup buildings next occupying 7 percent of the space.

The seller

The PincusCo database currently indicates that Slate Property Group owned at least 56 commercial properties in New York City with 1,859,845 square feet and a city-determined market value of $462.9 million. (Market value is typically about 50% of actual value.) The portfolio has $955.9 million in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and Heitman LLC respectively. Within the portfolio, the bulk, or 65 percent of the 1,859,845 square feet of built space are elevator properties, with walkup properties next occupying 18 percent of the space. The bulk, or 57 percent of the built space, is in Manhattan, with Brooklyn next at 31 percent of the space.
The PincusCo database currently indicates that Adam America Real Estate owned at least 10 commercial properties in New York City with 494,305 square feet and a city-determined market value of $57.4 million. (Market value is typically about 50% of actual value.) The portfolio has $304.8 million in debt, with top three lenders as Axos Bank, AIG, and MSD Partners respectively. Within the portfolio, the bulk, or 97 percent of the 494,305 square feet of built space are elevator properties, with retail properties next occupying 3 percent of the space. The bulk, or 53 percent of the built space, is in Brooklyn, with Manhattan next at 47 percent of the space.

The buyer

The PincusCo database currently indicates that HUBB NYC owned at least 57 commercial properties in New York City with 887,281 square feet and a city-determined market value of $324.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 58 percent of the 887,281 square feet of built space are elevator properties, with walkup properties next occupying 31 percent of the space. The bulk, or 71 percent of the built space, is in Manhattan, with Brooklyn next at 29 percent of the space.

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