Mann Group pays $15.1M to Pinnacle for 33-unit rental in Vinegar Hill

Mann Group through the entity 109 Gold Street Owner LLC paid $15.1 million to Pinnacle Group through the entity Gold 109 LLC for the 33-unit residential elevator building (D9) at 109 Gold Street in Vinegar Hill, Brooklyn. The expected use is cash flowing.

The deal closed on November 12, 2024 and was recorded on December 10, 2024. The property has 34,395 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $437 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 seller bought the property on June 17, 2015, for $20 million. The signatory for Pinnacle Group was Joel Wiener. The signatory for Mann Group was Eric Mann. The contract date was October 7, 2024.
The sale was brokered by Aaron Jungreis, Ben Khakshoor and Alex Fuchs of Rosewood Realty Group.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Mann Group had purchased any other properties and sold three properties in three transactions for a total of $33.1 million over the past 24 months.
The seller Pinnacle Group had not purchased any other properties and sold properties in 13 transactions for a total of $54.5 million over the same time period.

The property

The residential elevator building with 33 residential units in Vinegar Hill has 34,395 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 100 feet deep with a total lot size of 8,750 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The property has a 421A exemption that started in 2013 and expires in 2028. The city-designated market value for the property in 2022 is $7.7 million. The property has 33 rent regulated units according to city tax records from 2022.

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 $700 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 this tax block, PincusCo has identified the owners of three of the four commercial properties representing 238,864 square feet of the 240,964 square feet. The largest owner is Hk Organization, followed by Nyc Department Of Education and then Pinnacle Group.
There are no active new building construction projects on this tax block.

The majority, or 60 percent of the 240,964 square feet of built space are elevator buildings, with specialty buildings next occupying 39 percent of the space.

The seller

The PincusCo database currently indicates that Pinnacle Group owned at least 137 commercial properties with 8,415 residential units in New York City with 7,645,406 square feet and a city-determined market value of $607.7 million. (Market value is typically about 50% of actual value.) The portfolio has $986.8 million in debt, with top three lenders as New York Community Bank, Tel Aviv Stock Exchange bondholders, and Axos Bank respectively. Within the portfolio, the bulk, or 76 percent of the 7,645,406 square feet of built space are elevator properties, with walkup properties next occupying 23 percent of the space. The bulk, or 37 percent of the built space, is in Brooklyn, with Manhattan next at 23 percent of the space.

The buyer

The PincusCo database currently indicates that Mann Group owned at least 16 commercial properties with 71 residential units in New York City with 90,380 square feet and a city-determined market value of $20.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 54 percent of the 90,380 square feet of built space are walkup properties, with mixed-use properties next occupying 22 percent of the space. The bulk, or 94 percent of the built space, is in Brooklyn, with Manhattan next at 6 percent of the space.

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