Settlement Housing Fund pays $5.5M to Starrett Companies for dev site in Coney Island

Settlement Housing Fund through the entity Shf Oceangate Housing Development Fund Corporation paid $5.5 million to Starrett Companies through the entity Pemmil Land Holdings LLC for the industrial building (G7) along West 28th Street in Coney Island, Brooklyn.
The deal closed on April 27, 2023 and was recorded on May 11, 2023. The approximate address using Google Streetview is 2947 West 28th Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Settlement Housing Fund purchased 15 properties in six transactions for a total of $84.8 million and sold one property in one transactions for a total of $17.4 million over the past 24 months.
The seller Starrett Companies had not purchased any other properties and sold one properties in one transactions for a total of $40 million over the same time period.

The property

The parcel has frontage of 171 feet and is 108 feet deep with a total lot size of 19,299 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1 million. The most recent loan totaled $5.8 million and was provided by Signature Bank on December 22, 2021.

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 not received any significant violations 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 neighborhood

In Coney Island, The majority, or 68 percent of the 14.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 10 percent of the space. In sales, Coney Island has had very little sales volume relative to other neighborhoods with $108.9 million in sales volume in the last two years. For development, Coney Island has 1.9 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Brooklyn. It had 1.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the seven commercial properties representing 453,758 square feet of the 627,130 square feet. The two identified owners are Starrett Corporation and Arker Companies.
There are no active new building construction projects on this tax block.

The majority, or 99 percent of the 627,130 square feet of built space are elevator buildings, with mixed-use buildings next occupying 1 percent of the space.

The seller

The PincusCo database currently indicates that Starrett Companies owned at least two commercial properties with 8,018 residential units in New York City with 4,786,701 square feet and a city-determined market value of $1.1 billion. (Market value is typically about 50% of actual value.) The portfolio has $35.9 million in debt, borrowed from Capital One and Signature Bank. Within the portfolio, the bulk, or 100 percent of the 4,786,701 square feet of built space are D4 properties, with Q1 properties next occupying 0 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Settlement Housing Fund owned at least 30 commercial properties with 1,944 residential units in New York City with 2,027,322 square feet and a city-determined market value of $114.6 million. (Market value is typically about 50% of actual value.) The portfolio has $351.9 million in debt, with top three lenders as NYC Housing Development Corporation, Community Preservation Corporation, and UMB Bank respectively. Within the portfolio, the bulk, or 74 percent of the 2,027,322 square feet of built space are elevator properties, with walkup properties next occupying 21 percent of the space. The bulk, or 63 percent of the built space, is in Bronx, with Brooklyn next at 26 percent of the space.

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