Penn South Capital pays $11M to Kushner, C-III, for two walkups in Boerum Hill
354 and 356 State Street (Credit - Google)
Penn South Capital through the entity PSC State LLC paid $11 million to Kushner Companies and C-III Capital Partners through the entity KC3 – 354-356 State Street, LLC for the 20-unit residential walkup buildings (C1) at 354 and 356 State Street in Boerum Hill, Brooklyn. The expected use is cash flowing.
The deal closed on May 13, 2025 and was recorded on May 20, 2025. The two properties have 18,445 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $596 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 signatory for Kushner Companies and C-III Capital Partners was Matthew Burrows . The signatory for Penn South Capital led by Parag Sawhney and Raymond Chera, was Parag Sawhney. The contract date was March 14, 2025.
Penn South Capital financed the purchase with an $8.14 million loan from JPMorgan Chase.
Rosewood Realty Group’s Aaron Jungreis, Alex Fuchs and Ben Khakshoor brokered the deal.
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Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Penn South Capital purchased 15 properties in 14 transactions for a total of $74.7 million and sold six properties in six transactions for a total of $32.8 million over the past 24 months.
The seller Kushner Companies purchased two properties in two transactions for a total of $39.8 million and sold 25 properties in 16 transactions for a total of $229.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Tara Dexter, head officer and Raudo Cabral, site manager. The business entity is Kc3-354-356 State Street LLC. The two properties with a total of 18,445 square feet of built space generated revenue of $1.2 million per year or $63 per square foot. The sale price per square foot was $596.
The property
The residential walkup building with 20 residential units in Boerum Hill has 18,445 square feet of built space 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 2,500 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.4 million. The most recent loan totaled $8.4 million and was provided by Signature Bank on February 27, 2020. The property has 4 rent regulated units according to city tax records from 2023.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received eight housing violations and $1,610 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 the tax block of 354 State Street, PincusCo has identified the owners of 13 of the 32 commercial properties representing 75,841 square feet of the 168,511 square feet. The largest owner is Kushner Companies, followed by Tair Yakubov and then Cofinance Group.
There are no active new building construction projects on this tax block.
The majority, or 59 percent of the 168,511 square feet of built space are mixed-use buildings, with walkup buildings next occupying 30 percent of the space.
The seller
The PincusCo database currently indicates that Kushner Companies owned at least 32 commercial properties with 574 residential units in New York City with 490,207 square feet and a city-determined market value of $172.4 million. (Market value is typically about 50% of actual value.) The portfolio has $446.2 million in debt, with top three lenders as AIG, MSC 2019-L3, and Argentic Investment Management respectively. Within the portfolio, the bulk, or 57 percent of the 490,207 square feet of built space are walkup properties, with office properties next occupying 19 percent of the space. The bulk, or 71 percent of the built space, is in Manhattan, with Brooklyn next at 29 percent of the space.
The buyer
The PincusCo database currently indicates that Penn South Capital owned at least 26 commercial properties with 224 residential units in New York City with 168,465 square feet and a city-determined market value of $78.7 million. (Market value is typically about 50% of actual value.) The portfolio has $99.3 million in debt, with top three lenders as KeyBank, Shelter Growth Capital Partners, and Midcap Financial respectively. Within the portfolio, the bulk, or 61 percent of the 168,465 square feet of built space are walkup properties, with mixed-use properties next occupying 10 percent of the space. The bulk, or 79 percent of the built space, is in Manhattan, with Brooklyn next at 21 percent of the space.
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