Pacific Urban Investors pays $127.5M to UDR for 188-unit rental in Williamsburg

Pacific Urban Investors through the entity Leonard Pointe LLC paid $127.5 million to UDR through the entity UDR Leonard Pointe LLC for the 188-unit residential elevator building (D1) at 88 Richardson Street in Williamsburg, Brooklyn. The expected use is cash flowing.
The deal closed on January 15, 2025 and was recorded on January 22, 2025. The property has 186,779 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $682 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 February 14, 2019, for $130.4 million. The signatory for UDR was H. Andrew Cantor. The signatory for Pacific Urban Investors was Robert H. Kennis and Arthur J. Cole. The contract date was December 23, 2024. The buyer put out a release on the purchase. Pacific Urban Investors is affiliated with Marcus & Millichap.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Pacific Urban Investors purchased one property in one transaction for a total of $183 million and has no record it sold any properties over the past 24 months.
The seller UDR purchased two properties in two transactions for a total of $4.6 million and sold five properties in five transactions for a total of $20.8 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Thomas Toomey, head officer and Michael Lacy, officer. The business entities are Udr, Inc. and Udr Leonard Pointe Llc.

The property

The residential elevator building with 188 residential units in Williamsburg has 186,779 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 150 feet and is 174 feet deep with a total lot size of 38,983 square feet. The lot is irregular. The zoning is M1-2/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2016 and expires in 2041. The city-designated market value for the property in 2022 is $50 million. The property has 188 rent regulated units according to city tax records from 2023.

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 $2,500 in ECB penalties and $2,550 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 9, 2014. 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 five of the seven commercial properties representing 226,050 square feet of the 236,050 square feet. The largest owner is Pacific Urban Investors, followed by Freo Group and then Ronel Ben-Dov.
There are no active new building construction projects on this tax block.

The majority, or 93 percent of the 236,050 square feet of built space are elevator buildings, with industrial buildings next occupying 4 percent of the space.

The buyer

The PincusCo database currently indicates that Pacific Urban Investors owned at least one commercial property with 188 residential units in New York City with 186,779 square feet and a city-determined market value of $50 million. (Market value is typically about 50% of actual value.) The portfolio has $56 million in debt, borrowed from Fannie Mae. The portfolio consists of at least a single elevator property. It is located in Brooklyn.

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