Sunlight Development pays $9.8M for mid-construction project in Sunset Park

Sunlight Development through the entity Sunrise Brooklyn LLC paid $9.8 million to William Chou through the entity Koban Properties, LLC for the nine-unit residential elevator building (D6) at 816 58th Street in Sunset Park, Brooklyn. The expected use is to complete construction.

On the lot, there is one active new building construction project, 321192188, for a nine-unit, 22,614 square-foot residential (R-2) building. The project was submitted by William Chou with plans filed June 28, 2016 and permitted January 7, 2022.
The sale closed on August 14, 2024 and was recorded on August 30, 2024. The property has 22,614 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $433 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 William Chou was Ben Chou. The signatory for the active builder Sunlight Development was Linzhong Zhuo. The contract date was October 23, 2023. A David Aboodi affiliate bought the $4.9 million loan in May, as PincusCo reported in June.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Sunlight Development purchased 12 properties in seven transactions for a total of $186.7 million and sold one property in one transaction for a total of $2.2 million over the past 24 months.
The seller William Chou had not purchased any other properties and had not sold any properties over the same time period.

The property

The not-yet-complete residential elevator building with nine residential units in Sunset Park has 22,614 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 60 feet and is 100 feet deep with a total lot size of 6,010 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $885,000.

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 two DOB violations, $18,750 in ECB penalties, and $19,250 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of four of the 23 commercial properties representing 36,520 square feet of the 132,633 square feet. The largest owner is Yong Xiang Li, followed by Gui Xing Zhu and then Ben Chou.
On the tax block, there was one new building construction project filed totaling 22,614 square feet. It is a nine-unit, 22,614 square-foot residential (R-2) building submitted by William Chou with plans filed June 28, 2016 and permitted January 7, 2022.

The majority, or 70 percent of the 132,633 square feet of built space are mixed-use buildings, with elevator buildings next occupying 17 percent of the space.

The buyer

The PincusCo database currently indicates that Sunlight Development owned at least six commercial properties with 23 residential units in New York City with 194,508 square feet and a city-determined market value of $52.1 million. (Market value is typically about 50% of actual value.) The portfolio has $178.4 million in debt, borrowed from S3 Capital and NuVerse Advisors. Within the portfolio, the bulk, or 75 percent of the 194,508 square feet of built space are office properties, with elevator properties next occupying 18 percent of the space. The bulk, or 75 percent of the built space, is in Manhattan, with Queens next at 25 percent of the space.

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