Steiner recaps 750-unit Hub valued at $420M, was $408M in 2019

Steiner NYC through the entity More Hub LLC purchased a 62 percent interest from JPMorgan Chase through the entity 333 Schermerhorn Realty Company LLC valued at $259.5 million in Steiner NYC’s 750-unit residential elevator building (D7) at 333 Schermerhorn Street in Boerum Hill, Brooklyn. That stake gives the entire building a value of just under $420 million. The recapitalization includes a $62.5 million preferred equity injection from Meadow Partners, according to Crain’s, which reported earlier on the transaction.
The deal closed on March 11, 2025 and was recorded on March 13, 2025. The property has 662,532 square feet of built space according to a PincusCo analysis of city data. The $420 million valuation yields a price per built square foot of $634 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.)
JPMorgan bought the 62% stake in 2019 for $253 million, valuing the entire building at $408 million.

JLL had been marketing a sale or a recapitalization of the property. Walker & Dunlap in a release yesterday, said it worked as advisors for the recapitalization.

Prior sales and revenue

The seller JPMorgan Chase purchased two properties in two transactions for a total of $321.3 million and sold five properties in two transactions for a total of $174 million over the same time period. The 662,532-square-foot property generated revenue of $35.8 million or $54 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 750 residential units in Boerum Hill has 662,532 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 451 feet and is 172 feet deep with a total lot size of 52,705 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2019 and expires in 2044. The city-designated market value for the property in 2022 is $177.2 million. The property has 750 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 $1,250 in ECB penalties, seven housing violations, and $3,945 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on January 4, 2017. 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 seven of the 11 commercial properties representing 729,028 square feet of the 734,348 square feet. The largest owner is Steiner NYC, followed by Goose Property Management and then Monarch Realty Holdings.
On the tax block, there were three new building construction projects totaling 197,305 square feet. The largest is a 105-unit, 104,456 square-foot residential (R-2) building submitted by Yitzchok Katz and filed by Yitzchok Katz with plans filed January 26, 2023 and permitted February 18, 2025. The second largest is a 77-unit, 92,849 square-foot residential (R-2) building submitted by Yitzchok Katz and filed by Yitchok Katz with plans filed November 4, 2024 and it has not been permitted yet.

The majority, or 90 percent of the 734,348 square feet of built space are elevator buildings, with walkup buildings next occupying 6 percent of the space.

The seller

The PincusCo database currently indicates that JPMorgan Chase owned at least six commercial properties with six residential units in New York City with 3,911,031 square feet and a city-determined market value of $1.5 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 3,911,031 square feet of built space are office properties, with walkup properties next occupying 0 percent of the space. They are all located in Manhattan.

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