JSAF Capital pays $8.1M to Madison Realty for rentals in Carroll Gardens

JSAF Capital through the entity 321-323 Court Street LLC paid $8.1 million to Madison Realty Capital through the entity Court Street Property Holdings LLC for the five-unit mixed-use building (S5) at 323 Court Street at the corner of Sackett Street, and the adjacent four-unit mixed-use building (S4) at 321 Court Street in Carroll Gardens, Brooklyn.
The deal closed on January 20, 2023 and was recorded on February 6, 2023. The two properties have 9,515 square feet of built space and 1,653 square feet of additional air rights for a total buildable of 9,756 square feet according to PincusCo analysis of city data. The sale price per built square foot is $851 and the price per buildable square foot is $830 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 Madison Realty Capital was Brian Shatz. The signatory for JSAF Capital was Joseph Safdie. Madison Realty Capital is one of the most active buyers and sellers in New York City. Safdie is development several properties in New York.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 323 Court Street.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer JSAF Capital had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Madison Realty Capital purchased 26 properties in 21 transactions for a total of $371.7 million and sold 10 properties in eight transactions for a total of $94.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Julia Rodriguez, head officer and Vesa Naka, site manager. The business entity is Court Street Property Holdings LLC. Out of the two properties, one with a total of 9,515 square feet of built space generated revenue of $161,252 per year.

The property

The 323 Court Street parcel has frontage of 14 feet and is 90 feet deep with a total lot size of 1,260 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.8 million.

Violations and lawsuits

The properties were involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $8.6 million money judgment concerning a contract filed on December 9, 2022, by Madison Realty Capital against Joseph Safdie. In addition, according to city public data, the properties have not received any significant 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 neighborhood

In Carroll Gardens, the bulk, or 44 percent of the 3.6 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 33 percent of the space. In sales, Carroll Gardens has had very little sales volume relative to other neighborhoods with $268.8 million in sales volume in the last two years. For development, Carroll Gardens has had very little major development activity relative to other neighborhoods.It had 130,454 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On the tax block of 323 Court Street, PincusCo has identified the owners of four of the 20 commercial properties representing 16,200 square feet of the 60,446 square feet. The largest owner is Madison Realty Capital, followed by Greenbrook Partners and then Charney Companies.
There are no active new building construction projects on this tax block.

The majority, or 91 percent of the 60,446 square feet of built space are mixed-use buildings, with walkup buildings next occupying 9 percent of the space.

The seller

The PincusCo database currently indicates that Madison Realty Capital owned at least 64 commercial properties in New York City with 2,295,082 square feet and a city-determined market value of $365.5 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as Signature Bank, Athene Annuity And Life Company, and FTLP LLC respectively. Within the portfolio, the bulk, or 56 percent of the 2,295,082 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. The bulk, or 36 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.

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