Sam Sprei pays $13.1M to Madison Realty Capital for 41-unit rental in Brighton Beach following bankruptcy

Sam Sprei through the entity 3052 Brighton Properties LLC paid $13.1 million to Madison Realty Capital through the entity 3052 Brighton St Owner LLC for the 41-unit residential elevator building (D7) at 3052 Brighton 1st Street in Brighton Beach, Brooklyn. The expected use is cash flowing.
The deal closed on July 8, 2024 and was recorded on August 7, 2024. The property has 72,715 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $179 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.)
Madison Realty Capital, the former lender, took title to the property on January 12, 2024, in a transaction valued at $24 million. The signatory for Madison Realty Capital was Urian Yap. The signatory for Sam Sprei was Yechiel S. Sprei. Sam Sprei also known as Yechiel Sprei or Shimon Sprei, and Chaim Miller, also known as Harry Miller, developed the property, then lost it following a foreclosure process and then a bankruptcy sale to lender Madison Realty Capital. In this transaction, Madison sells it back to Sprei. Northgate Real Estate Group was the bankruptcy broker and distributed a setup in advance of an auction scheduled for 2022. The bankruptcy was case number 1-20-40794-nhl through 3052 Brighton First, LLC.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Sam Sprei had purchased any other properties and sold one property in one transactions for a total of $24 million over the past 24 months.
The seller Madison Realty Capital purchased 11 properties in six transactions for a total of $309.1 million and sold 14 properties in 10 transactions for a total of $136.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Gregory Laspina, head officer and Anand Ramswak, site manager. The business entities are Black Diamond Realty and Gregory Laspina As Receiver.

The property

The residential elevator building with 41 residential units in Brighton Beach has 72,715 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 180 feet and is 100 feet deep with a total lot size of 17,999 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property has a 421A exemption that started in 2011 and expires in 2026. The city-designated market value for the property in 2022 is $7.5 million. The most recent loan totaled $8.5 million and was provided by Community Preservation Corporation on January 12, 2024.

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 10 housing violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 4, 2013. 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 two of the 15 commercial properties representing 106,715 square feet of the 191,891 square feet. The two identified owners are Isaac Katz and Madison Realty Capital.
On the tax block, there was one new building construction project filed totaling 2,000 square feet. It is a two-unit, 2,000 square-foot residential (R-3) building submitted by Alia Ijaz with plans filed June 8, 2016 and it has not been permitted yet.

The majority, or 38 percent of the 191,891 square feet of built space are elevator buildings, with office buildings next occupying 22 percent of the space.

The seller

The PincusCo database currently indicates that Madison Realty Capital owned at least 64 commercial properties with 2,633 residential units in New York City with 2,906,315 square feet and a city-determined market value of $401.1 million. (Market value is typically about 50% of actual value.) The portfolio has $1.6 billion in debt, with top three lenders as Signature Bank, MF1 Capital, and Elliott Investment Management respectively. Within the portfolio, the bulk, or 72 percent of the 2,906,315 square feet of built space are elevator properties, with walkup properties next occupying 12 percent of the space. The bulk, or 40 percent of the built space, is in Queens, with Brooklyn next at 31 percent of the space.

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