KKR pays $59.2M to Bruman Realty for 105 units in Brooklyn, second purchase in week

In a second group of recorded purchases, Kohlberg Kravis Roberts & Co. paid $59.2 million to Joseph Brunner’s Bruman Realty for two properties in Brooklyn with a total of 105 residential units. These two transactions follow on KKR’s $30.6 million purchase of an Ocean Hill rental, which PincusCo reported last week.

In the first of these recent transactions, Kohlberg Kravis Roberts & Co. through the entity KRE Bklyner 10 Lexington LLC paid Bruman Realty’s 10 Lex Holdings LLC $46.3 million for 10 Lexington Avenue in Clinton Hill. The deal closed on October 9, 2020, and was recorded on October 23, 2020. The transaction consists of 1 parcel, including the tax class multifamily, semi-fireproof (without stores) (D1) and containing 81 residential units. The property is 55,341 square feet. The parcel(s) have total development potential of 59,178 square feet.
The sale price per unit is $571,605.

The sale price is higher than the secured loan, but the loan KKR obtained was much lower than the most recent loan Bruman received. The prior loan from 2017 was $37.5 million, and the new loan was $26.2 million.

The sale contract date was July 21, 2020. The signatory for Bruman was Joseph Brunner, for KKR it was Daniel Rudin, director of real estate.

The DOB issued a new construction (NB) initial temporary certificate of occupancy for the building with 81 residential units on October 7, 2016.
Over the past five years, there have been 3 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There was one renovation/alteration project (A2) applied for with a total estimated value of $20,000.There has been one new building permit application totaling 55,341 square feet. Those plans include a total of 81 residential units. There has been one demolition project filed for the parcels over the past five years.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link

In the second of the transactions recorded Friday, Kohlberg Kravis Roberts & Co. through the entity KRE Bklyner 23 Menahan LLC paid Bruman Realty’s Menahan Street Holdings LLC $12.9 million for 17 Menahan Street in Bushwick. The deal closed on October 9, 2020, and was recorded on October 23, 2020. The transaction consists of 1 parcel, including the tax class multifamily, over six families without stores (C1) and containing 24 residential units. The property is 20,000 square feet. The parcel(s) have total development potential of 20,000 square feet.
The sale price per unit is $537,500.

The contract date was July 21, 2020. The last time the property sold was January 7, 2016, for $4,500,000.
The DOB issued a major alteration (A1) initial temporary certificate of occupancy for the building with 24 residential units on February 11, 2019.
Over the past five years, there have been 7 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. Of those there was one major renovation application including a certificate of occupancy change (A1) filed with a total estimated value of $1,259,250. Those filings sought to increase the number of residential units by 24 to 24. There were 5 renovation/alteration projects (A2) applied for with a total estimated value of $530,400. There has been one demolition project filed for the parcels over the past five years.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
The signatory for the buyer or lender was Daniel Rudin