Sugar Hill Capital sells two Brooklyn walkups for $8.3M, buyers are Klosed, Namdar, Lebowitz

Sugar Hill Capital Partners sold two Brooklyn walkup buildings in two separate transactions for a total of $8.3 million.

In the more expensive, Klosed Properties and Namdar Realty Group, through the entity 584 Myrtle BH LLC paid $4.65 million to Sugar Hill through its 584 Myrtle Residences, LLC for the eight-unit residential walkup building (C7) at 584 Myrtle Avenue in Clinton Hill, Brooklyn.
The deal closed on December 6, 2022 and was recorded on December 19, 2022. The property has 8,235 square feet of built space and 3,326 square feet of additional air rights for a total buildable of 11,572 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $564 and the price per buildable square foot is $401 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 July 27, 2018, for $4.65 million.

In the second, Yitzchok Lebowitz through the entity Schefa Tov LLC paid $3.7 million to Sugar Hill’s 126 Herkimer Residences, LLC for the 12-unit residential walkup building (C1) at 126 Herkimer Street in Bedford Stuyvesant, Brooklyn.
The deal closed on October 31, 2022 and was recorded on December 19, 2022. The property has 10,508 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $349 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 April 1, 2015, for $3.8 million.

Prior sales and revenue

The former owners of 584 Myrtle Avenue according to the Department of Housing Preservation and Development includes Scott Castellano, head officer and Genesis Herrera, site manager. The business entities are Tri-Hill Management and 584 Myrtle Residences, Llc.

The property

The 584 Myrtle Avenue parcel has frontage of 45 feet and is 65 feet deep with a total lot size of 2,893 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $448,100.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the 584 Myrtle Avenue property for the past 24 months. In addition, according to city public data, the property has received $1,250 in ECB penalties and $1,300 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 the 584 Myrtle Avenue tax lot.

The block

On the 584 Myrtle Avenue tax block, PincusCo has identified the owners of two of the 17 commercial properties representing 10,803 square feet of the 185,744 square feet. The two identified owners are Anthony Cerullo and Sugar Hill Capital Partners.
On the tax block, there were four new building construction projects totaling 260,243 square feet. The largest is a 142-unit, 119,307 square-foot residential (R-2) building submitted by Quinlan Development Group and filed by Gerald Keucher with plans filed September 30, 2016 and permitted July 20, 2021. The second largest is a 81-unit, 70,336 square-foot residential (R-2) building submitted by Nikant Ohri with plans filed August 13, 2020 and it has not been permitted yet.

The majority, or 38 percent of the 171,787 square feet of built space are hotel buildings, with walkup buildings next occupying 36 percent of the space.

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