Hudson Companies, Property Resource, sign $7.7M ground lease with NYCHA

Hudson Companies, Property Resources Corporation, and Duvernay + Brooks as tenants signed a 99-year ground lease valued at $7.7 million with the New York City Housing Authority as landlord, and at the same time the developers signed a $436.6M rehab construction loan with NYC Housing Development Corporation for seven properties in East New York.

This is part of an ongoing $3.1 billion investment that will improve 29 buildings across the city. The Commercial Observer reported that the Boulevard Together partnership includes The Hudson Companies, Property Resources Corporation, and Duvernay + Brooks.

The properties include the 576-unit residential elevator building at 845 Schenck Avenue in East New York, Brooklyn, 740-unit residential elevator building at 785 Schenck Avenue in East New York, Brooklyn, and 72-unit residential walkup building at 443 Barbey Street in East New York, Brooklyn.
The deal closed on December 28, 2021 and was recorded on January 25, 2022.
The seven properties have 1,338,015 square feet of built space and 481,405 square feet of additional air rights for a total buildable of 1,755,875 square feet according to PincusCo analysis of city data. The loan price per built square foot is $326 and the price per buildable square foot is $248 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 Hudson Companies, Property Resources Corporation, and Duvernay + Brooks. was David Gartenlaub and Aaron Koffman.
Out of the seven properties, six with a total of 1,338,015 square feet of built space generated revenue of $25.1 million per year.

In East New York, the bulk, or 31 percent of the 68.3 million square feet of built space are 1-4 family buildings, with residential elevator buildings next occupying 26 percent of the space. In sales, East New York has the 4th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years, largely because of the recapitalization of Starrett City. For development, East New York has 2.5 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Brooklyn. It had 2.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.
On the tax block, all properties are residential elevator.

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