Napier Park Global Capital acquires 8-unit walkup in Bedford Stuyvesant valued at $2.7M

Napier Park Global Capital through the entity Lh-Np-Abs Income Owner Trust (Cayman) LLC acquired the eight-unit residential walkup building (C1) at 303 Sumpter Street in Bedford Stuyvesant, Brooklyn, via a note purchase. The transfer value was $2.7 million. Napier Park Global took title after buying the $3.1 million in original debt in August 2023 from Sharestates. The former owner was Darren Singer through the entity 303 Sumpter LLC.
The deal closed on October 24, 2023 and was recorded on November 6, 2023. The property has 5,915 square feet of built space and 149 square feet of additional air rights for a total buildable of 6,072 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $454 and the price per buildable square foot is $442 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 March 26, 2018, for $957,000. The signatory for Darren Singer was Darren Singer. The signatory for Napier Park Global Capital was Rutvij Shanghavi. The contract date was September 5, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Napier Park Global Capital had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Darren Singer had not purchased any other properties and had not sold any properties over the same time period.

The property

The residential walkup building with 8 residential units in Bedford Stuyvesant has 5,915 square feet of built space and 149 square feet of additional air rights for a total buildable of 6,072 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $532,000.

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, $40,625 in ECB penalties, and $41,225 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project for a eight-unit, 5,426 square-foot R-2 building. The project was submitted by Darren Singer with plans filed January 19, 2018 and permitted October 4, 2018.

The block

On this tax block, PincusCo has identified the owners of seven of the 14 commercial properties representing 37,459 square feet of the 73,847 square feet. The largest owner is Urban Strategies Management, followed by Nuveen Real Estate and then Mordechai Halberstam.
There are no active new building construction projects on this tax block.

The majority, or 95 percent of the 73,847 square feet of built space are walkup buildings, with mixed-use buildings next occupying 5 percent of the space.

The seller

The PincusCo database currently indicates that Darren Singer owned at least four commercial properties with 58 residential units in New York City with 45,558 square feet and a city-determined market value of $8.2 million. (Market value is typically about 50% of actual value.) The portfolio has $31.6 million in debt, borrowed from KeyBank and W Financial. Within the portfolio, the bulk, or 75 percent of the 45,558 square feet of built space are elevator properties, with walkup properties next occupying 25 percent of the space. The bulk, or 75 percent of the built space, is in Bronx, with Brooklyn next at 25 percent of the space.

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