Sterling Town Equities pays $11.7M for likely dev site in Prospect Heights

Developer Sterling Town Equities through the entity Underhill Heights LLC paid $11.7 million to Parkland Group through the entity 105 Underhill Avenue, LLC for adjacent parking structures at 105 Underhill Avenue and 326 St Marks Avenue in Prospect Heights, Brooklyn. The expected use is ground up development.
The deal closed on August 2, 2024 and was recorded on August 5, 2024. The two properties have 25,438 square feet of built space and 11,251 square feet of additional air rights for a total buildable of 36,636 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $457 and the price per buildable square foot is $317 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 signatory for Parkland Group was Steven Brauser. The signatory for Sterling Town Equities was Ido Paul Amit. The contract date was May 9, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Sterling Town Equities had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Parkland Group had not purchased any other properties and sold one properties in one transactions for a total of $4.6 million over the same time period.

The property

The industrial building in Prospect Heights has 25,438 square feet of built space and 11,251 square feet of additional air rights for a total buildable of 36,636 square feet according to a PincusCo analysis of city data. The parcel has frontage of 85 feet and is 131 feet deep with a total lot size of 13,450 square feet. The lot is irregular. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $100 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 neighborhood

In Prospect Heights, The bulk, or 49 percent of the 7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Prospect Heights has had very little sales volume relative to other neighborhoods with $202.5 million in sales volume in the last two years. For development, Prospect Heights has had very little major development activity relative to other neighborhoods.It had 643,533 square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On the tax block of 105 Underhill Avenue, PincusCo has identified the owners of eight of the 30 commercial properties representing 107,506 square feet of the 210,402 square feet. The largest owner is Almog Hakmon, followed by Dovy Andrusier and then Eli Hamway.
On the tax block, there was one new building construction project filed totaling 10,218 square feet. It is a eight-unit, 10,218 square-foot residential (R-2) building submitted by Ari Harkov|Warner Lewis|Anthony Morena and filed by Ari Harkov with plans filed December 17, 2021 and permitted January 23, 2023.

The majority, or 59 percent of the 210,402 square feet of built space are walkup buildings, with mixed-use buildings next occupying 18 percent of the space.

The buyer

The PincusCo database currently indicates that Sterling Town Equities owned at least 10 commercial properties with 169 residential units in New York City with 206,141 square feet and a city-determined market value of $33.4 million. (Market value is typically about 50% of actual value.) The portfolio has $73.7 million in debt, with top three lenders as Bank Hapoalim, Yanina Associates, and Morgan Stanley respectively. Within the portfolio, the bulk, or 87 percent of the 206,141 square feet of built space are elevator properties, with walkup properties next occupying 8 percent of the space. They are all located in Brooklyn.

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