Indev pays $8 million to Sugar Hill Capital for two walkups in Brooklyn

Indev Real Estate pays $8 million to Sugar Hill Capital Partners for two residential walkups in Prospect Lefferts Gardens and Fort Greene, Brooklyn, in two separate transactions.

In the first, Indev Real Estate through the entity 42 Hawthorne LLC paid $4.2 million to Sugar Hill Capital Partners through the entity 42 Hawthorne Owner, LLC for the eight-unit residential walkup building (C1) at 42 Hawthorne Street in Prospect Lefferts Gardens, Brooklyn.
The deal closed on January 12, 2023 and was recorded on January 24, 2023.The property has 13,000 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $326 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 February 19, 2016, for $3.5 million. The signatory for Sugar Hill Capital Partners was Margaret Grossman. The signatory for Indev Real Estate was Joanna Moloney. Indev Real Estate, based in Paris, opened it New York office in 2010.

In the second, Indev Real Estate through the entity 90 Clemont LLC paid $3.8 million to Sugar Hill Capital Partners through the entity 90 Clermont Residences, LLC for the seven-unit residential elevator building (D1) at 90 Clermont Avenue in Fort Greene, Brooklyn. The deal closed on January 13, 2023 and was recorded on January 24, 2023. The property has 7,648 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $492 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 October 8, 2015, for $4.6 million. The signatory for Sugar Hill Capital Partners was Margaret Grossman. The signatory for Indev Real Estate was Joanna Moloney.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Indev Real Estate purchased one properties in one transactions for a total of $4.2 million and has no record it sold any properties over the past 24 months.
The seller Sugar Hill Capital Partners had not purchased any other properties and sold 17 properties in 17 transactions for a total of $60.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Scott Castellano, head officer and Doron Yaghoubi, site manager. The business entity is 42 Hawthorne Owner, Llc.

The property

The 42 Hawthorne Street parcel has frontage of 37 feet and is 106 feet deep with a total lot size of 3,975 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.1 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 three housing violations 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 11 of the 28 commercial properties representing 224,910 square feet of the 340,901 square feet. The largest owner is Wing Mui, followed by United Management and then Sugar Hill Capital Partners.
On the tax block, there were three new building construction projects totaling 28,268 square feet. The largest is a 17-unit, 11,660-square-foot R-2 building developed by Wayne Petinaud with plans filed June 21, 2019 and it has not been permitted yet.The second largest is a eight-unit, 8,325-square-foot R-2 building developed by Steven Goltche with plans filed December 17, 2019 and it has not been permitted yet.

The majority, or 51 percent of the 340,901 square feet of built space are elevator buildings, with walkup buildings next occupying 35 percent of the space.

The seller

The PincusCo database currently indicates that Sugar Hill Capital Partners owned at least 87 commercial properties in New York City with 1,672,043 square feet and a city-determined market value of $211 million. (Market value is typically about 50% of actual value.) The portfolio has $150.9 million in debt, with top three lenders as Signature Bank, Citibank, and New York Community Bank respectively. Within the portfolio, the bulk, or 52 percent of the 1,672,043 square feet of built space are walkup properties, with elevator properties next occupying 37 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.

The buyer

The PincusCo database currently indicates that Indev Real Estate owned at least nine commercial properties in New York City with 147,027 square feet and a city-determined market value of $19.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. The bulk, or 67 percent of the built space, is in Brooklyn, with Manhattan next at 33 percent of the space.

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