REDA Holdings pays $7.3M to Nir Sapir for 12-unit elevator rental in Bed Stuy

REDA Holdings through the entity Reda 766 Lafayette LLC paid $7.3 million to Nir Sapir through the entity 766 Lafayette, LLC for the 12-unit residential elevator building at 766 Lafayette Avenue in Bed Stuy, Brooklyn.
The deal closed on April 7, 2022 and was recorded on May 9, 2022. The property has 12,971 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $560 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 November 20, 2013, for $500,000. The signatory for Nir Sapir was Rosemary Hayden. The signatory for REDA Holdings was Luciano Cassin. Luciano Cassin and Julian Kiguel are principals with REDA.  Nir Sapir is affiliated with East Coast Real Estate Development Group.

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 $74 million and has no record it sold any properties over the past 24 months.
The seller Nir Sapir had not purchased any other properties and sold one properties in one transactions for a total of $3.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Nir Sapir, head officer and Keren Zohar, agent. The business entity is 766 Lafayette Llc.

The property

The 766 Lafayette Avenue parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The property has a 421A exemption that started in 2018 and expires in 2033. The city-designated market value for the property in 2022 is $1.9 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 received $380 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 30, 2016. On these lots, there is one active new building construction project for a nine-unit, 10,000-square-foot R-2 building. The project was developed by Rey Shapiro with plans filed March 5, 2014 and it has not been permitted yet.

The neighborhood

In Bed Stuy, the bulk, or 38 percent of the 92.5 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 20 percent of the space. In sales, Bed Stuy has 1.5 times the average sales volume among other neighborhoods with $417.3 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, Bed Stuy is the 8th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of seven of the 11 commercial properties representing 91,675 square feet of the 120,091 square feet. The largest owner is Gregory Anderson, followed by L+M Development Partners and then Nir Sapir. There is one active new building construction project totaling 10,000 square feet. It is a nine-unit, 10,000-square-foot R-2 building developed by Rey Shapiro with plans filed March 5, 2014 and it has not been permitted yet.

The majority, or 46 percent of the 229,723 square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 36 percent of the space.

The buyer

The PincusCo database currently indicates that REDA Holdings owned at least six commercial properties with 89,227 square feet and a city-determined market value of $33.5 million. (Market value is typically about 50% of actual value.) The portfolio has $39.8 million in debt, with top three lenders as Dime Community Bank, Citibank, and Signature Bank respectively. Within the portfolio, the bulk, or 58 percent of the 89,227 square feet of built space are residential elevator properties, with residential walkup properties next occupying 30 percent of the space. The bulk, or 93 percent of the built space, is in Manhattan, with Brooklyn next at 7 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 766 Lafayette Avenue that occurred over the past 24 months.

Direct link to Acris document. link