LIHC acquires interest from partners Cammeby’s, FBE valued at $84.9M for three walkups with 263 units in Williamsburg

LIHC Investment Group through the entity La Cabana Acquisition LLC acquired an interest from Cammeby’s International Group and FBE Limited through the entity Cam Cabana, LLC valued at $84.9M for 167-unit residential walkup building (C9) at 391 Lorimer Street in Williamsburg, Brooklyn, 48-unit residential walkup building (C9) at 16 Ten Eyck Street in Williamsburg, Brooklyn, and 48-unit residential walkup building (C9) at 417 Lorimer Street in Williamsburg, Brooklyn.
The deal closed on July 28, 2022 and was recorded on August 18, 2022. The three properties have 182,879 square feet of built space and 18,889 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $464 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.)
There was no tax paid on the transfer. A city lending affiliate previously originated a loan on the property, noting that Cammeby’s International Group and FBE Limited were partners with LIHC.

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 391 Lorimer Street.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer LIHC Investment Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Cammeby’s International Group had not purchased any other properties and sold 10 properties in 10 transactions for a total of $92.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Ephraim Fruchthandler, head officer and Matis Tyberg, site manager. The business entity is La Cabana Apartments Llc. The three properties with a total of 182,879 square feet of built space generated revenue of $3.7 million per year or $20 per square foot. The sale price per square foot was $464.

The property

The 391 Lorimer Street parcel has frontage of 202 feet and is 200 feet deep with a total lot size of 40,520 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $5.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received three DOB violations, 43 housing violations, and six housing litigations 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 the tax block of 391 Lorimer Street, PincusCo has identified the owners of eight of the 11 commercial properties representing 132,017 square feet of the 134,717 square feet. The largest owner is FBE Limited, followed by St. Nicks Alliance and then Knoll Family.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 134,717 square feet of built space are walkup buildings, with industrial buildings next occupying 0 percent of the space.

The seller

The PincusCo database currently indicates that Cammeby’s International Group owned at least 125 commercial properties in New York City with 16,230,174 square feet and a city-determined market value of $1.7 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 68 percent of the 16,230,174 square feet of built space are elevator properties, with walkup properties next occupying 23 percent of the space. The bulk, or 54 percent of the built space, is in Queens, with Brooklyn next at 31 percent of the space.
The PincusCo database currently indicates that FBE Limited owned at least 32 commercial properties in New York City with 1,167,219 square feet and a city-determined market value of $154.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 51 percent of the 1,167,219 square feet of built space are elevator properties, with walkup properties next occupying 21 percent of the space. The bulk, or 86 percent of the built space, is in Brooklyn, with Manhattan next at 12 percent of the space.

The buyer

The PincusCo database currently indicates that LIHC Investment Group owned at least 12 commercial properties in New York City with 1,709,608 square feet and a city-determined market value of $153.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 1,709,608 square feet of built space are elevator properties, with specialty properties next occupying 0 percent of the space. The bulk, or 86 percent of the built space, is in Bronx, with Manhattan next at 14 percent of the space.

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