L+M pays Stellar Management $84.6M for 1590-unit Knickerbocker affordable complex in Two Bridges

L+M Development Partners through the entity KV Owner LLC paid Stellar Management through the entity Kvi Holdings LLC $84.6 million for control of the 1590-unit historic affordable housing development built in 1934 known as Knickerbocker Village, an elevator complex (D6) at 10-20 Monroe Street in Two Bridges, Manhattan.
The deal closed on April 25, 2024 and was recorded on May 1, 2024. The property has 1,396,625 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $60 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.)
This is an entity-level sale, not a deed sale, and is subject to a complex regulatory agreement with the state. A group of tenants in 2022 opposed the sale by Stellar Management to L+M Development Partners, objecting to the new owner’s plan for rents, The Real Deal reported at the time. The court index number is 154878/2022. Apollo Global Management was a prior owner of the complex, according to 2007 city records. It is unclear when Stellar obtained control.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer L+M Development Partners purchased 10 properties in four transactions for a total of $63.2 million and sold 15 properties in seven transactions for a total of $71 million over the past 24 months.
The seller Stellar Management purchased one property in one transaction for a total of $133.3 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Adam Roman, head officer and Vincent Panettieri, officer. The business entity is Knickerbocker Village Inc.

The property

The residential elevator building with 1,590 residential units in Two Bridges has 1,396,625 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 635 feet and is 376 feet deep with a total lot size of 216,905 square feet. The lot is irregular. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $65.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received three DOB violations, 10 housing violations, and $3,000 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

There are no active new building construction projects on this tax block.

All properties are elevator.

The seller

The PincusCo database currently indicates that Stellar Management owned at least 83 commercial properties with 7,815 residential units in New York City with 10,290,759 square feet and a city-determined market value of $1.4 billion. (Market value is typically about 50% of actual value.) The portfolio has $2.2 billion in debt, with top three lenders as Goldman Sachs, New York Community Bank, and Helaba respectively. Within the portfolio, the bulk, or 76 percent of the 10,290,759 square feet of built space are elevator properties, with office properties next occupying 8 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Bronx next at 11 percent of the space.

The buyer

The PincusCo database currently indicates that L+M Development Partners owned at least 224 commercial properties with 20,392 residential units in New York City with 19,569,988 square feet and a city-determined market value of $2.1 billion. (Market value is typically about 50% of actual value.) The portfolio has $3.2 billion in debt, with top three lenders as NYC Housing Development Corporation, Wells Fargo, and NYS Housing Finance Agency respectively. Within the portfolio, the bulk, or 83 percent of the 19,569,988 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 47 percent of the built space, is in Brooklyn, with Manhattan next at 35 percent of the space.

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