Scharfman Organization sells 76-unit rental in Parkchester for $9.3M, first sale in years

The entity 2112 Star LLC paid $9.3 million to the Scharfman Organization through the entity 2112 Starling LLC for the 76-unit residential elevator building (D7) at 2112 Starling Avenue in Parkchester, Bronx. The expected use is cash flowing. This is the first sale for the Scharfman Organization in at least four years, according to PincusCo records. The landlord owns more than 4,000 residential units and is one of the largest in the city.
The buyer entity was in care of Chestnut Holdings of New York, by the signatory Daniel Schwartz.

The deal closed on September 30, 2024 and was recorded on October 9, 2024. The property has 51,565 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.)
The seller bought the property on December 18, 2006, for $7.1 million. The signatory for Scharfman Organization was Mark Scharfman. The signatory for the buyer was Daniel Schwartz. The contract date was July 29, 2024. This is the first Scharfman Organization sale PincusCo has tracked in at least four years.

Prior sales and revenue

The seller Scharfman Organization 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 Mark Scharfman, head officer and Dio Delrosario, site manager. The business entity is 2112 Starling Llc.

The property

The residential elevator building with 76 residential units in Parkchester has 51,565 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 161 feet and is 105 feet deep with a total lot size of 15,795 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property has a J-51 exemption that started in 2020 and expires in 2054. The city-designated market value for the property in 2022 is $6.5 million. The property has 76 rent regulated units according to city tax records from 2023.

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 28 housing violations and $380 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 11 commercial properties representing 51,565 square feet of the 88,880 square feet. The identified owner is Scharfman Organization.
There are no active new building construction projects on this tax block.

The majority, or 58 percent of the 88,880 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 Scharfman Organization owned at least 133 commercial properties with 4,014 residential units in New York City with 3,208,828 square feet and a city-determined market value of $666.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 71 percent of the 3,208,828 square feet of built space are elevator properties, with walkup properties next occupying 28 percent of the space. The bulk, or 78 percent of the built space, is in Manhattan, with Bronx next at 11 percent of the space.

Correction: An earlier version of this post incorrectly identified the buyer signatory, Daniel Schwartz, as being that same Daniel Schwartz who is an executive with T30 Capital. However, they are not the same person.

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