Madison Realty Capital sells 13-unit rental for $8.2M in Kensington

The anonymous entity 423 Op LLC paid $8.2 million to Madison Realty Capital through the entity Sdf9 Ocean Parkway Owner LLC for the 13-unit rental condo at 423 Ocean Parkway in Kensington, Brooklyn through the purchase of two commercial condominium units.
The deal closed on August 17, 2022 and was recorded on August 31, 2022. The two condo units have 18,252 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $452 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 David Speiser. The signatory for 423 Op LLC was Dmitriy Ishimbayev.

Prior sales and revenue

The seller Madison Realty Capital purchased 17 properties in 17 transactions for a total of $166.6 million and sold five properties in five transactions for a total of $156.1 million over the past 24 months.

The property

The 423 Ocean Parkway parcel has a total lot size of 11,736 square feet. The property has a 421A exemption that started in 2009 and expires in 2024. The city-designated market value for the property in 2022 is $1.3 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 not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. 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 423 Ocean Parkway, PincusCo has identified the owners of five of the 10 commercial properties representing 419,390 square feet of the 451,165 square feet. The largest owner is Weinreb Management, followed by A&E Real Estate Holdings and then Ronald J. Swartz.
There is one active new building construction project totaling 15,531 square feet. It is a 17-unit, 15,531-square-foot R-3 building developed by Juan Ortiz with plans filed January 9, 2018 and it has not been permitted yet.

The majority, or 87 percent of the 439,429 square feet of built space are elevator 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 67 commercial properties in New York City with 2,265,050 square feet and a city-determined market value of $388.3 million. (Market value is typically about 50% of actual value.) The portfolio has $658 million in debt, with top three lenders as Signature Bank, Athene Annuity And Life Company, and Citibank respectively. Within the portfolio, the bulk, or 57 percent of the 2,265,050 square feet of built space are elevator properties, with walkup properties next occupying 17 percent of the space. The bulk, or 38 percent of the built space, is in Manhattan, with Brooklyn next at 30 percent of the space.

Direct link to Acris document. link