Shulem Herman pays $8.5M to Cayuga Capital for industrial in Bushwick

Shulem Herman through the entity Troutman Terrace LLC paid $8.5 million to Cayuga Capital Management through the entity Going Stagg LLC for industrial building (F4) at 348 Troutman Street in Bushwick, Brooklyn.
The deal closed on February 15, 2023 and was recorded on February 22, 2023. The property has 20,565 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $413 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 March 1, 2016, for $10.5 million. The signatory for Cayuga Capital Management was Ryan O. Miller. The signatory for Shulem Herman was Shulem Herman.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Shulem Herman purchased three properties in three transactions for a total of $27.4 million and has no record it sold any properties over the past 24 months.
The seller Cayuga Capital Management had not purchased any other properties and sold two properties in two transactions for a total of $26.2 million over the same time period. The 20,565-square-foot property generated revenue of $417,029 or $20 per square foot, according to the most recent income and expense figures.

The property

The 348 Troutman Street parcel has frontage of 100 feet and is 200 feet deep with a total lot size of 18,162 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.6 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 $4,000 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 $5 million on this tax lot.

The neighborhood

In Bushwick, the bulk, or 44 percent of the 33.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 3.1 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.5 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Brooklyn. It had 1.5 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 industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the 25 commercial properties representing 11,812 square feet of the 176,370 square feet. The two identified owners are RiseBoro Community Partnership and Paul W. Henry.
On the tax block, there were two new building construction projects totaling 4,999 square feet. The largest is a N/A-unit, 2,500-square-foot F-1 building developed by Anderson Reed with plans filed December 17, 2013 and it has not been permitted yet.The second largest is a N/A-unit, 2,499-square-foot B building developed by Bert Brodsky with plans filed January 26, 2017 and it has not been permitted yet.

The majority, or 35 percent of the 176,370 square feet of built space are industrial buildings, with walkup buildings next occupying 33 percent of the space.

The seller

The PincusCo database currently indicates that Cayuga Capital Management owned at least 25 commercial properties in New York City with 259,833 square feet and a city-determined market value of $42.2 million. (Market value is typically about 50% of actual value.) The portfolio has $170.4 million in debt, with top three lenders as M&T Bank, Amherst Capital Management, and Bridgeinvest respectively. Within the portfolio, the bulk, or 39 percent of the 259,833 square feet of built space are walkup properties, with elevator properties next occupying 24 percent of the space. The bulk, or 96 percent of the built space, is in Brooklyn, with Queens next at 4 percent of the space.

The buyer

The PincusCo database currently indicates that Shulem Herman owned at least nine commercial properties in New York City with 373,672 square feet and a city-determined market value of $56.9 million. (Market value is typically about 50% of actual value.) The portfolio has $143 million in debt, with top three lenders as Signature Bank, Dime Community Bank, and Broadview Funding respectively. Within the portfolio, the bulk, or 35 percent of the 373,672 square feet of built space are specialty properties, with elevator properties next occupying 31 percent of the space. The bulk, or 43 percent of the built space, is in Brooklyn, with Queens next at 31 percent of the space.

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