Sugar Hill Capital Partners sells 10-unit walkup in Harlem, 19th sale in year totaling $69M

The entity 376 Tyhum LLC paid $1.2 million to Sugar Hill Capital Partners through the entity 376 West 127th Owner, LLC for the 10-unit residential walkup building (C1) at 376 West 127th Street in Harlem, Manhattan.
The deal closed on January 31, 2023 and was recorded on February 1, 2023. The property has 8,735 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $139 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 10, 2018, for $3.4 million. The signatory for Sugar Hill Capital Partners was Jeremy Salzberg. The signatory for 376 Tyhum LLC was Rachel Posen.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Sugar Hill Capital Partners had not purchased any other properties and sold 19 properties in 19 transactions for a total of $68.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Scott Castellano, head officer and Doron Yaghoubi, site manager. The business entity is 376 West 127th Owner, Llc. The 8,735-square-foot property generated revenue of $206,583 or $24 per square foot, according to the most recent income and expense figures.

The property

The 376 West 127th St parcel has frontage of 25 feet and is 75 feet deep with a total lot size of 1,875 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The property has a J-51 exemption that started in 1991.0 and expires in 2025.0. The city-designated market value for the property in 2022 is $946,000.The most recent loan totaled $16.8 million and was provided by Signature Bank on October 29, 2021.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $16.8 million commercial foreclosure concerning a loan filed on November 18, 2022, by Signature Bank against Sugar Hill Capital Partners. In addition, according to city public data, the property has received $625 in ECB penalties, 35 housing violations, $1,355 in OATH penalties, and one housing litigation 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 block

On this tax block, PincusCo has identified the owners of 17 of the 37 commercial properties representing 139,252 square feet of the 329,894 square feet. The largest owner is Sugar Hill Capital Partners, followed by Solomon Cromwell and then L+M Development Partners.
there are no active new building construction projects on this tax block.

The majority, or 68 percent of the 329,894 square feet of built space are walkup buildings, with elevator buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that Sugar Hill Capital Partners owned at least 85 commercial properties in New York City with 1,651,395 square feet and a city-determined market value of $206.7 million. (Market value is typically about 50% of actual value.) The portfolio has $150.9 million in debt, with top three lenders as Signature Bank, Citibank, and New York Community Bank respectively. Within the portfolio, the bulk, or 52 percent of the 1,651,395 square feet of built space are walkup properties, with elevator properties next occupying 37 percent of the space. The bulk, or 72 percent of the built space, is in Manhattan, with Brooklyn next at 28 percent of the space.

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