Tredway, Gilbane Development, ELH Mgmt. pay Arker, Related $150M

Tredway, Gilbane Development, ELH Mgmt. formed a joint venture that paid $150 million to a partnership including Arker Companies and Related Companies for three affordable housing buildings with 818 units and one development site in Coney Island, Brooklyn. Brookfield Asset Management was also identified as a party on the new ownership team. The acquisition occurred in three separate transactions. The sale was reported by multiple outlets including Real Estate Weekly, which identified Ariel Property Advisors as the broker.
The acquisition was financed with a $120 million loan from Deutsche Bank.

In the first, Tredway, Gilbane Development, ELH Mgmt. paid $61.4 million to Arker Companies and Related Companies  for the 362-unit residential elevator building (D6) at 2930 West 30th Street in Coney Island, Brooklyn.
The deal closed on May 24, 2023 and was recorded on June 13, 2023. The property has 386,700 square feet of built space and 97,610 square feet of additional air rights for a total buildable of 484,068 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $158 and the price per buildable square foot is $126 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.)

In the second, Tredway, Gilbane Development, ELH Mgmt., and Brookfield Asset Management through the entity New Sea Park East Housing Development Fund paid $60.1 million to Arker Companies and Related Companies through the entity Sp Aagt LLC for the 332-unit residential elevator building (D6) at 2966 West 28th Street in Coney Island, Brooklyn.
The deal closed on May 24, 2023 and was recorded on June 13, 2023. The property has 453,758 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $132 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.)

In the third, which includes the development, Tredway, Gilbane Development, ELH Mgmt., and Brookfield Asset Management through the entity New Sea Park North Housing Development paid $28.5 million to Arker Companies and Related Companies through the entity Sp Aagt LLC for the 122-unit residential elevator building (D1) at 2828 West 28th Street in Coney Island, Brooklyn.
The development site can hold up to 153 residential units and 145,602 gross square feet, according to the Real Estate Weekly article.
The deal closed on May 24, 2023 and was recorded on June 13, 2023. The property has 102,000 square feet of built space and 272,666 square feet of additional air rights for a total buildable of 374,339 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $279 and the price per buildable square foot is $76 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 signatories for Arker Companies and Related Companies was Matthew Finkle and David K Zussman, Alexander Arker, Dina Arker, and Daniel Moritz. The signatories for Tredway, Gilbane Development and ELH Mgmt. were Jacqueline Tom and Adam Sussi.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Tredway had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Arker Companies purchased one property in one transaction for a total of $45 million and sold 10 properties in one transaction for a total of $90.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Ilsoo Kim, head officer and Robert Corso, officer. The business entity is Sea Park West Lp. The 386,700-square-foot property generated revenue of $7.1 million or $18 per square foot, according to the most recent income and expense figures.

The buyer

The PincusCo database currently indicates that Elh Mgmt. owned at least 85 commercial properties with 1,386 residential units in New York City with 1,359,922 square feet and a city-determined market value of $167.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 63 percent of the 1,359,922 square feet of built space are walkup properties, with elevator properties next occupying 31 percent of the space. The bulk, or 74 percent of the built space, is in Brooklyn, with Manhattan next at 14 percent of the space.
The PincusCo database currently indicates that Gilbane Development owned at least 18 commercial properties with 764 residential units in New York City with 834,381 square feet and a city-determined market value of $47.8 million. (Market value is typically about 50% of actual value.) The portfolio has $51.7 million in debt, borrowed from City of New York and Merchants Bank of Indiana. Within the portfolio, the bulk, or 81 percent of the 834,381 square feet of built space are elevator properties, with walkup properties next occupying 19 percent of the space. They are all located in Bronx.

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