L+M signs 99-year ground lease valued at $28.1M with Shnay family in Bedford Stuyvesant

L+M Development Partners as tenant through the entity Fulton Park Preservation LLC signed a 99-year ground lease valued at $28.1 million with the Shnay family as landlord through the entity Fulton Park Associates, L.P. for the 112-unit residential walkup building (C1) at 53 Utica Avenue in Bedford Stuyvesant, Brooklyn and 97-unit residential walkup building (C1) at 1754 Fulton Street in Bedford Stuyvesant, Brooklyn.
The deal closed on November 7, 2023 and was recorded on November 14, 2023. The two properties have 214,111 square feet of built space and 385,414 square feet of additional air rights for a total buildable of 600,338 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $131 and the price per buildable square foot is $46 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 the Shnay family was Abram Shnay. The signatory for L+M Development Partners was Eben Ellertson. This is a 99-year ground lease that the property owners, the Shnay family of AMS Realty and SK Development, own.

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 53 Utica Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer L+M Development Partners purchased 10 properties in three transactions for a total of $51.5 million and sold 18 properties in 10 transactions for a total of $104 million over the past 24 months.
The fee owners according to the Department of Housing Preservation and Development includes Abram Shnay, head officer and Martin Shnay, head officer. The business entity is Fulton Park Associates.

The property

The residential walkup building with 112 residential units in Bedford Stuyvesant has 214,111 square feet of built space and 385,414 square feet of additional air rights for a total buildable of 600,338 square feet according to a PincusCo analysis of city data. The parcel has frontage of 700 feet and is 334 feet deep with a total lot size of 160,169 square feet. The lot is irregular. 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 $15.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received four DOB violations, five housing violations, and $1,000 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

On the tax block of 53 Utica Avenue, PincusCo has identified the owners of three of the seven commercial properties representing 123,434 square feet of the 126,002 square feet. The largest owner is Neighborhood Restore Hdfc, followed by Elad Kimon and then AMS Realty, which is the Shnay family company.
On the tax block, there was one new building construction project filed totaling 3,213 square feet. It is a three-unit, 3,213 square-foot residential (R-2) building submitted by Rona Reodica with plans filed March 6, 2019 and permitted May 27, 2021.

The majority, or 98 percent of the 126,002 square feet of built space are walkup buildings, with mixed-use buildings next occupying 1 percent of the space.

The seller

The PincusCo database currently indicates that AMS Realty owned at least five commercial properties with 467 residential units in New York City with 425,599 square feet and a city-determined market value of $52.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that L+M Development Partners owned at least 214 commercial properties with 20,183 residential units in New York City with 19,355,877 square feet and a city-determined market value of $2 billion. (Market value is typically about 50% of actual value.) The portfolio has $3 billion in debt, with top three lenders as NYC Housing Development Corporation, Wells Fargo, and Barings respectively. Within the portfolio, the bulk, or 84 percent of the 19,355,877 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 46 percent of the built space, is in Brooklyn, with Manhattan next at 35 percent of the space.

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