REDA Holdings pays $3.7M to Related for 8-unit walkup in Crown Heights

REDA Holdings through the entity REDA Classon LLC paid $3.7 million to Related Companies through the entity Nysandy8 Brooklyn 2 LLC for the eight-unit residential walkup building (C1) at 788 Classon Avenue in Crown Heights, Brooklyn.
The deal closed on June 25, 2024 and was recorded on July 22, 2024. The property has 5,850 square feet of built space and 2,925 square feet of additional air rights for a total buildable of 8,775 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $632 and the price per buildable square foot is $421 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 July 16, 2015, for $4.5 million. The signatory for Related Companies was Matthew Becker. The signatory for REDA Holdings was Julien Kiguel. The contract date was March 11, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer REDA Holdings purchased three properties in three transactions for a total of $49.5 million and has no record it sold any properties over the past 24 months.
The seller Related Companies purchased nine properties in four transactions for a total of $75.7 million and sold 11 properties in 10 transactions for a total of $817.3 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Dennis Ovalle, head officer and Natasha Davis, agent. The business entities are Simply Better Apartment Homes and Nysandy8 Brooklyn 2 Llc.

The property

The residential walkup building with 8 residential units in Crown Heights has 5,850 square feet of built space and 2,925 square feet of additional air rights for a total buildable of 8,775 square feet according to a PincusCo analysis of city data. The parcel has frontage of 29 feet and is 100 feet deep with a total lot size of 2,925 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. 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 received $300 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 18 of the 37 commercial properties representing 177,815 square feet of the 240,022 square feet. The largest owner is Watermark Capital Group, followed by Sophia Whitin and then Solomon Schwimmer.
On the tax block, there were three new building construction projects totaling 65,440 square feet. The largest is a 10-unit, 27,613 square-foot residential (R-2) building submitted by Theordore Trachtenberg with plans filed February 22, 2022 and permitted December 14, 2022. The second largest is a 41-unit, 27,524 square-foot residential (R-2) building submitted by Rishona Sender with plans filed December 16, 2015 and it has not been permitted yet.

The majority, or 41 percent of the 240,022 square feet of built space are walkup buildings, with elevator buildings next occupying 33 percent of the space.

The seller

The PincusCo database currently indicates that Related Companies owned at least 177 commercial properties with 9,309 residential units in New York City with 21,261,616 square feet and a city-determined market value of $6 billion. (Market value is typically about 50% of actual value.) The portfolio has $5.6 billion in debt, with top three lenders as Wells Fargo, Carlyle Group, and MetLife respectively. Within the portfolio, the bulk, or 44 percent of the 21,261,616 square feet of built space are elevator properties, with office properties next occupying 30 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Bronx next at 23 percent of the space.

The buyer

The PincusCo database currently indicates that REDA Holdings owned at least 11 commercial properties with 167 residential units in New York City with 180,831 square feet and a city-determined market value of $68.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 66 percent of the 180,831 square feet of built space are elevator properties, with walkup properties next occupying 24 percent of the space. The bulk, or 55 percent of the built space, is in Manhattan, with Brooklyn next at 45 percent of the space.

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