MSquared, partners buy out Brookfield for $321.8M at 1,193-unit Harlem rental

MSquared and additional unidentified partners through the entity 3333 Broadway Owner, LLC paid $321.8 million to Brookfield Properties through the entity Bsrep Ua 3333 Broadway LLC for a ground lease that controls the 1,193-unit multifamily rental at 3333 Broadway in Manhattan. The expected use is cash flowing. Urban American Management was a part of the ownership with Brookfield, and remains so with MSquared.
The deal closed on December 27, 2024 and was recorded on January 7, 2025. The property has 1,443,724 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $222 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.)
Brookfield bought the property on October 22, 2014 for $248.9 million from Urban American, which remained in the deal. Urban American bought this building as part of a portfolio in 2007. The signatory for Brookfield Properties and Urban American Management was Julian Seek. The signatory for MSquared and Urban American Management was Joshua S. Eisenberg. This is a ground lease sale. The Commercial Observer reported MSquared was a buyer along with Urban American, in a deal brokered by Eastdil’s Gary Phillips.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer MSquared had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Brookfield Properties had not purchased any other properties and sold 12 properties in nine transactions for a total of $348.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Antoinette Travaglino, head officer and Jana Schmidt, officer. The business entity is Bsrep Ua 3333 Broadway Llc. The 1,443,724-square-foot property generated revenue of $35.1 million or $24 per square foot, according to the most recent income and expense figures.

The property

The condo building with 1,193 residential units in MANHATTAN has 1,443,724 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 1,443,724 square feet. The city-designated market value for the property in 2022 is $182.9 million. The most recent loan totaled $232.1 million and was provided by JPMorgan Chase on May 1, 2024.

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 $625 in ECB penalties, 61 housing violations, and $1,555 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 eight of the 10 commercial properties representing 397,074 square feet of the 604,166 square feet. The largest owner is Storagemart, followed by L+M Development Partners and then Consolina Musarra.
On the tax block, there was one new building construction project filed totaling 74,462 square feet. It is a 86-unit, 74,462 square-foot residential (R-2) building submitted by Artifact Real Estate Development Company and filed by Javier Martinez with plans filed June 15, 2022 and it has not been permitted yet.

The majority, or 31 percent of the 604,166 square feet of built space are industrial buildings, with specialty buildings next occupying 29 percent of the space.

The seller

The PincusCo database currently indicates that Brookfield Properties owned at least 56 commercial properties with 4,799 residential units in New York City with 24,876,733 square feet and a city-determined market value of $5.7 billion. (Market value is typically about 50% of actual value.) The portfolio has $11.6 billion in debt, with top three lenders as Wells Fargo, JPMorgan Chase, and ING Capital respectively. Within the portfolio, the bulk, or 60 percent of the 24,876,733 square feet of built space are office properties, with elevator properties next occupying 20 percent of the space. The bulk, or 72 percent of the built space, is in Manhattan, with Brooklyn next at 21 percent of the space.
The PincusCo database currently indicates that Urban American Management owned at least 17 commercial properties with 1,036 residential units in New York City with 785,090 square feet and a city-determined market value of $99 million. (Market value is typically about 50% of actual value.) The portfolio has $187.6 million in debt, with top three lenders as MetLife, New York Community Bank, and Spencer Savings Bank respectively. Within the portfolio, the bulk, or 73 percent of the 785,090 square feet of built space are elevator properties, with walkup properties next occupying 27 percent of the space. The bulk, or 37 percent of the built space, is in Queens, with Manhattan next at 33 percent of the space.

The buyer

The PincusCo database currently indicates that Urban American Management owned at least 17 commercial properties with 1,036 residential units in New York City with 785,090 square feet and a city-determined market value of $99 million. (Market value is typically about 50% of actual value.) The portfolio has $187.6 million in debt, with top three lenders as MetLife, New York Community Bank, and Spencer Savings Bank respectively. Within the portfolio, the bulk, or 73 percent of the 785,090 square feet of built space are elevator properties, with walkup properties next occupying 27 percent of the space. The bulk, or 37 percent of the built space, is in Queens, with Manhattan next at 33 percent of the space.

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