PH Realty, Rockledge pay $27.7M to Sentinel for rentals in Brighton Beach, Crown Heights

Peter Hungerford’s PH Realty Capital and partner Rockledge paid $27.72 million to Sentinel Real Estate for four residential elevator buildings in Brighton Beach and Crown Heights, Brooklyn in four separate transactions. This is the second group of sales recorded between the parties, which is part of a 24-building, $179 million transaction.

In the first of these newly recorded sales, PH Realty Capital and Rockledge through the entity 125 Brighton 11th Street Owner LLC paid $11.4 million to Sentinel Real Estate through the entity 125 Brighton 11th Street LLC for the 112-unit residential elevator building (D1) at 125 Brighton 11th Street in Brighton Beach, Brooklyn.
The deal closed on July 12, 2024 and was recorded on July 23, 2024. The property has 117,600 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $96 per the PincusCo analysis.
The seller bought the property on January 15, 2014, for $18.4 million.

In the second, PH Realty Capital and Rockledge through the entity 231 Brightwater Court Owner LLC paid $6.6 million to Sentinel Real Estate through the entity Brightwater 231 LLC for the 49-unit residential elevator building (D1) at 231 Brightwater Court in Brighton Beach, Brooklyn. The deal closed on July 12, 2024 and was recorded on July 23, 2024. The property has 45,189 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $145 per the PincusCo analysis. The seller bought the property on August 30, 2016, for $14.2 million.

In the third, PH Realty Capital and Rockledge through the entity 79 Brighton 11th Street Owner LLC paid $5.5 million to Sentinel Real Estate through the entity 79 Brighton 11th Street LLC for the 58-unit residential elevator building (D1) at 79 Brighton 11th Street in Brighton Beach, Brooklyn. The deal closed on July 12, 2024 and was recorded on July 23, 2024. The property has 50,500 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $108 per the PincusCo analysis. The seller bought the property on January 15, 2014, for $9.4 million.

In the fourth, PH Realty Capital and Rockledge through the entity 1115 Union Street Owner LLC paid $4.2 million to Sentinel Real Estate through the entity 1115 Union Apartments, Lp for the 24-unit residential walkup building (C1) at 1115 Union Street in Crown Heights, Brooklyn. The deal closed on July 12, 2024 and was recorded on July 23, 2024. The property has 19,300 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $220 per the PincusCo analysis. The seller bought the property on March 17, 2015, for $6.8 million.

The signatory for Sentinel Real Estate was Michael Gershman, company vice president. The signatory for PH Realty Capital and Rockledge was Peter Hungerford. The contract date was December 8, 2023. The buyers are PH Realty Capital and Rockledge CRE through a partnership called Longacre. This is one of a much larger, 24-building transaction between the parties that will total $179 million, according to a person familiar with the deal. The purchase is in two parts, with the first 12 buildings closing on July 12 for $104 million and the second 12 buildings to close in mid-August for $75 million. The brokers were Ryan Perkoski and John Martisch of RPR Ventures and Amit Doshi of Meridian Capital Group. Gershsman https://www.sentinelcorp.com/management-team.aspx https://rockledgecre.com/about/

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer PH Realty Capital purchased 12 properties in seven transactions for a total of $88.4 million and has no record it sold any properties over the past 24 months.
The seller Sentinel Real Estate had not purchased any other properties and sold 14 properties in 14 transactions for a total of $127.5 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Leland Roth, head officer and Ryan Kramer, site manager. The business entities are Rose Property Mgmt Grp Llc and 125 Brighton 11th Street Llc.

The property

The residential elevator building with 112 residential units in Brighton Beach has 117,600 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 280 feet and is 100 feet deep with a total lot size of 28,000 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 $7.2 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 received four DOB violations, $6,250 in ECB penalties, 46 housing violations, and $6,550 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 this tax block, PincusCo has identified the owners of one of the 17 commercial properties representing 100,800 square feet of the 414,120 square feet. The identified owner is Parlanti Group.
There are no active new building construction projects on this tax block.

The majority, or 61 percent of the 414,120 square feet of built space are elevator buildings, with walkup buildings next occupying 21 percent of the space.

The seller

The PincusCo database currently indicates that Sentinel Real Estate owned at least 11 commercial properties with 619 residential units in New York City with 628,871 square feet and a city-determined market value of $50.3 million. (Market value is typically about 50% of actual value.) The portfolio has $31.7 million in debt, borrowed from New York Community Bank. Within the portfolio, the bulk, or 94 percent of the 628,871 square feet of built space are elevator properties, with walkup properties next occupying 6 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that PH Realty Capital owned at least 42 commercial properties with 1,263 residential units in New York City with 1,078,940 square feet and a city-determined market value of $135.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 58 percent of the 1,078,940 square feet of built space are elevator properties, with walkup properties next occupying 42 percent of the space. The bulk, or 71 percent of the built space, is in Manhattan, with Bronx next at 29 percent of the space.
The PincusCo database currently indicates that Rockledge owned at least eight commercial properties with 457 residential units in New York City with 411,592 square feet and a city-determined market value of $41.5 million. (Market value is typically about 50% of actual value.) The portfolio has $17.8 million in debt, borrowed from Edgewood Capital Advisors and Bethpage Federal Credit Union. Within the portfolio, the bulk, or 81 percent of the 411,592 square feet of built space are elevator properties, with walkup properties next occupying 19 percent of the space. The bulk, or 89 percent of the built space, is in Manhattan, with Brooklyn next at 11 percent of the space.
Correction: The contract date in a prior version of this post was given as December 8, 2024, when in fact it was December 8, 2023.

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