REDA Holdings through the entity Reda 50 North First LLC paid $34.9 million to Kushner Companies through the entity 50 North One LLC for the 46-unit residential elevator building (D1) at 50 North First Street in Williamsburg, Brooklyn.
The deal closed on January 30, 2023 and was recorded on February 13, 2023. The property has 54,698 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $638 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 December 2, 2013, for $33.5 million. The signatory for Kushner Companies was Matthew Burrows. The signatory for REDA Holdings was Julian Kiguel.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer REDA Holdings purchased five properties in five transactions for a total of $59.8 million and has no record it sold any properties over the past 24 months.
The seller Kushner Companies had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Tara Dexter, head officer and Alex Lozado, site manager. The business entity is 50 North 1st Street. The 54,698-square-foot property generated revenue of $3.3 million or $60 per square foot, according to the most recent income and expense figures.
The 50 North First Street parcel has frontage of 100 feet and is 138 feet deep with a total lot size of 15,800 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 2012 and expires in 2037. The city-designated market value for the property in 2022 is $18.2 million.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.
For the tax lot building, it received its initial certificate of occupancy on July 18, 2013. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.
On this tax block, PincusCo has identified the owners of eight of the 18 commercial properties representing 92,063 square feet of the 144,084 square feet. The largest owner is All Year Management, followed by David Werner Real Estate Investments and then Shlomo Moskovits.
On the tax block, there were two new building construction projects totaling 102,027 square feet. The largest is a 45-unit, 51,398-square-foot R-2 building developed by Moshe Braver with plans filed December 1, 2020 and permitted February 16, 2022. The second largest is a 55-unit, 50,629-square-foot R-2 building developed by Moshe Braver with plans filed September 11, 2015 and permitted December 14, 2015.
The majority, or 42 percent of the 131,297 square feet of built space are elevator buildings, with mixed-use buildings next occupying 26 percent of the space.
The PincusCo database currently indicates that Kushner Companies owned at least 56 commercial properties in New York City with 625,096 square feet and a city-determined market value of $237.7 million. (Market value is typically about 50% of actual value.) The portfolio has $585.8 million in debt, with top three lenders as AIG, Citibank, and Argentic Investment Management respectively. Within the portfolio, the bulk, or 82 percent of the 625,096 square feet of built space are walkup properties, with elevator properties next occupying 15 percent of the space. The bulk, or 83 percent of the built space, is in Manhattan, with Brooklyn next at 17 percent of the space.
The PincusCo database currently indicates that REDA Holdings owned at least eight commercial properties in New York City with 111,023 square feet and a city-determined market value of $38.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 58 percent of the 111,023 square feet of built space are elevator properties, with walkup properties next occupying 32 percent of the space. The bulk, or 83 percent of the built space, is in Manhattan, with Brooklyn next at 17 percent of the space.
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