Penn South Capital pays $6.3M in Brooklyn Heights, Alphabet City

Parag Sawhney’s Penn South Capital paid $6.3 million to Michael Keefe for two rental buildings in Brooklyn Heights and in Alphabet City in two transactions.

In the first, Penn South Capital through the entities PSC OE7 LLC and 80 Orange LLC paid $3.6 million to Michael Keefe of Orange 80 LLC for the three-unit mixed-use building (S3) at 80-82 Orange Street in Brooklyn Heights, Brooklyn.
The deal closed on August 10, 2023 and was recorded on August 17, 2023. The property has 3,112 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,156 per the PincusCo analysis.

In the second, Penn South Capital through the entity 191 East 7th LLC paid $2.7 million to Michael Keefe through the entity East 191 LLC for the five-unit residential walkup building (C2) at 191 East 7th Street in Alphabet City, Manhattan. The deal closed on August 10, 2023 and was recorded on August 17, 2023. The property has 3,328 square feet of built space and 992 square feet of additional air rights for a total buildable of 4,316 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $818 and the price per buildable square foot is $631 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.)

Prior sales and revenue

The former owners of 80-82 Orange Street according to the Department of Housing Preservation and Development include Michael Keefe, head officer and Jose Mendez, site manager. The business entity is Orange 80 Llc.

The property

The parcel 80-82 Orange Street has frontage of 19 feet and is 41 feet deep with a total lot size of 815 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the Brooklyn Heights Historic District. The city-designated market value for the property in 2022 is $1.4 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.

The neighborhood

In Brooklyn Heights, The bulk, or 26 percent of the 12 million square feet of commercial built space are office buildings, with elevator buildings next occupying 23 percent of the space. In sales, Brooklyn Heights has 1.7 times the average sales volume among other neighborhoods with $599.4 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Brooklyn Heights has had very little major development activity relative to other neighborhoods.It had 359,817 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 10 of the 16 commercial properties representing 82,828 square feet of the 92,730 square feet. The largest owner is Ann Kranis, followed by Greenbrook Partners and then Jonathan Scutari.
There are no active new building construction projects on this tax block.

The majority, or 59 percent of the 92,730 square feet of built space are walkup buildings, with elevator buildings next occupying 23 percent of the space.

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