Sugar Hill Capital sells 8-unit walkup in Carroll Gardens for $5.5M

An anonymous owner through the entity 30 3rd Street Partners LLC paid $5.5 million to Sugar Hill Capital Partners through the entity 30 Third Street Residences, LLC for eight-unit residential walkup building (C1) at 30 Third Street in Carroll Gardens, Brooklyn.
The deal closed on September 16, 2022 and was recorded on October 17, 2022. The property has 7,444 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $736 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 19, 2015, for $3.5 million. The signatory for Sugar Hill Capital Partners was Margaret Grossman.

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 six properties in six transactions for a total of $31.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes David Schorr, head officer and Doron Yaghoubi, site manager. The business entity is 30 Third Street Residences, Llc.

The property

The 30 Third Street parcel has frontage of 27 feet and is 100 feet deep with a total lot size of 2,775 square feet. 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 $2.7 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 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 $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of six of the 17 commercial properties representing 36,115 square feet of the 101,118 square feet. The largest owner is Greenbrook Partners, followed by Sugar Hill Capital Partners and then Palmiotto Dominick.
On the tax block, there was one new building construction project filed totaling 5,000 square feet. It is a 82-unit, 5,000-square-foot R-2 building developed by Shimon Hoffman with plans filed March 3, 2022 and it has not been permitted yet.

The majority, or 48 percent of the 98,558 square feet of built space are walkup buildings, with industrial buildings next occupying 37 percent of the space.

The seller

The PincusCo database currently indicates that Sugar Hill Capital Partners owned at least 99 commercial properties in New York City with 1,806,644 square feet and a city-determined market value of $227.6 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 56 percent of the 1,806,644 square feet of built space are walkup properties, with elevator properties next occupying 34 percent of the space. The bulk, or 71 percent of the built space, is in Manhattan, with Brooklyn next at 29 percent of the space.

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