Ohana pays $110.5M for Hilton hotel in Boerum Hill

Ohana Real Estate Investors through the entity HB Propco LLC paid $110.5 million to Tidal Real Estate Partners through the entities including 140 Schermerhorn Street Property Owner LLC and 71 Smith Street Retail LLC for the Hilton Brooklyn New York hotel condominium unit and three retail units in the building at 140 Schermerhorn Street in Boerum Hill, Brooklyn. The sale occurred in two transactions, one for the hotel and another for the three retail condos. The building also includes residential condominium units.

The hotel condo unit and the three retail units total about 148,000 square feet.

A year ago, Ohana acquired the Tillary Hotel in Downtown Brooklyn through a bankruptcy and paid BD Hotels $62 million for a hotel in the West Village, among other recent transactions.

In the first transaction, The deal closed on November 30, 2023 and was recorded on December 5, 2023. The property has 130,677 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $746 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.)

In the second transaction, Ohana through the entity Hb Retail Owner LLC paid $13 million to Tidal Real Estate Partners through the entity 71 Smith Street Retail LLC for the retail condo at 71 Smith Street in Boerum Hill, Brooklyn, retail condo at 140 Schermerhorn Street in Boerum Hill, Brooklyn, and retail condo at 71 Smith Street in Boerum Hill, Brooklyn.
The deal closed on November 30, 2023 and was recorded on December 5, 2023. The three properties have 17,514 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $742 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.)

Flank, the development firm which dissolved and former principals formed Tidal Real Estate Partners, bought out its partner Carlyle Group on November 16, 2016, in a transaction valued at $88 million.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 21, 2020. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by 71 Smith Street Property Owner, LLC to create 128 residential units and 3 commercial units in a building at 265 State Street in Boerum Hill, Brooklyn, called Boerum Condominiumthat has a $277.9 million sellout, according to an June 9, 2014 submission to the New York State Attorney General. The principal of the sponsor, 71 SMITH STREET PROPERTY OWNER, LLC, was Jason Hart.

The neighborhood

In Boerum Hill, The bulk, or 32 percent of the 9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 16 percent of the space. In sales, Boerum Hill has near average sales volume among other neighborhoods with $344.2 million in sales volume in the last two years and is the 23rd highest in Brooklyn. For development, Boerum Hill has 1.8 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Brooklyn. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 98,607 square feet of the 98,607 square feet. The two identified owners are Breaking Ground and Pinnacle Group.
On the tax block, there was one new building construction project filed totaling 406,628 square feet. It is a 324-unit, 406,628 square-foot hotel/dormitory/shelter (R-1) building submitted by Flank and filed by Mick Walsdorf with plans filed May 18, 2013 and permitted June 26, 2014.

The majority, or 100 percent of the 98,607 square feet of built space are elevator buildings, with specialty buildings next occupying 0 percent of the space.

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