Thor Equities pays $58.5M to Fairstead for 75-unit rental in Clinton Hill, gets $43M loan

UPDATED 6:30 a.m., August 19, 2024: Thor Equities through the entity Thor Chocolate Factory LLC paid $58.5 million to Fairstead through the entity 275 Park Owner LLC for the 75-unit residential elevator building (D6) at 275 Park Avenue in Clinton Hill, Brooklyn. The expected use is cash flowing. To finance the purchase, Prime Finance provided a $43 million loan.
Thor Equities did not immediately respond to a request for comment. The Commercial Observer reported on the sale yesterday.
The deal closed on August 8, 2024 and was recorded on August 15, 2024. The property has 184,411 square feet of built space according to a PincusCo analysis of city data. The sale price per built 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 seller bought the property on October 30, 2019, for $67.2 million. The signatory for Fairstead was Jeffrey Goldberg. The signatory for Thor Equities was Morris Missry. The contract date was May 30, 2024.

A Rosewood Realty Group team including Aaron Jungreis, Ben Khakshoor and Alex Fuchs brokered the transaction.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Thor Equities purchased one property in one transaction for a total of $8.1 million and sold or transferred 10 properties in seven transactions for a total of $303.7 million over the past 24 months.
The seller Fairstead purchased 167 properties in four transactions for a total of $186.7 million and sold two properties in two transactions for a total of $105.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Toni Harris, head officer and Eva Akhond, site manager. The business entities are Fairstead Management LLC and 275 Park Owner LLC.

The property

The residential elevator building with 75 residential units in Clinton Hill has 184,411 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 176 feet and is 204 feet deep with a total lot size of 41,195 square feet. The lot is irregular. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $33.8 million. The most recent loan totaled $60 million and was provided by Heitman LLC on October 30, 2019.

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 $5,425 in ECB penalties, 42 housing violations, $9,325 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 $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of two of the 13 commercial properties representing 189,811 square feet of the 352,658 square feet. The two identified owners are Meadow Partners and Juergen Dold.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 352,658 square feet of built space are elevator buildings, with specialty buildings next occupying 29 percent of the space.

The seller

The PincusCo database currently indicates that Fairstead owned at least 256 commercial properties with 7,219 residential units in New York City with 6,650,480 square feet and a city-determined market value of $802 million. (Market value is typically about 50% of actual value.) The portfolio has $568 million in debt, with top three lenders as NewPoint Real Estate Capital, Merchants Capital, and Greystone & Co. respectively. Within the portfolio, the bulk, or 71 percent of the 6,650,480 square feet of built space are elevator properties, with walkup properties next occupying 26 percent of the space. The bulk, or 36 percent of the built space, is in Brooklyn, with Manhattan next at 35 percent of the space.

The buyer

The PincusCo database currently indicates that Thor Equities owned at least 23 commercial properties with 274 residential units in New York City with 652,303 square feet and a city-determined market value of $166.6 million. (Market value is typically about 50% of actual value.) The portfolio has $248.8 million in debt, with top three lenders as MetLife, Athene Holding, and AB CarVal Investors respectively. Within the portfolio, the bulk, or 32 percent of the 652,303 square feet of built space are elevator properties, with industrial properties next occupying 23 percent of the space. The bulk, or 75 percent of the built space, is in Manhattan, with Brooklyn next at 25 percent of the space.

Correction: a previous version of this post incorrectly said the loan was nearly $58 million, due to an error in Acris records.

Direct link to Acris document. link