Tredway pays $41.5M for ground lease controlling two rentals in Bedford Stuyvesant

Tredway through the entity Restore Herkimer Preservation LLC paid $41.5 million for a ground lease to Phoenix Realty Group through the entity 260 Herkimer Street Limited Partnership which controls the 139-unit residential elevator building (D1) at 234 Herkimer Street and the 138-unit property at 260 Herkimer Street in Bedford Stuyvesant, Brooklyn. The expected use is cash flowing.
The deal closed on May 15, 2026 and was recorded on June 5, 2026. The two properties have 357,963 square feet of built space and 38,177 square feet of additional air rights according to a PincusCo analysis of city data. The sale price per built square foot is $115 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 Phoenix Realty Group was Ron Orgel . The signatory for Tredway was Adam Sussi . 75 year lease start October 3, 1972, and run to October 2, 2047, according to a document filed recording the original lease. The landlord is the City of New York’s NYC Educational Construction Fund.
Tredway financed the purchase with a $49 million loan from Merchants Bank of Indiana.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has records that the buyer Tredway purchased five properties in three transactions for a total of $173.6 million and has no record it sold any properties over the past 24 months.
The seller Phoenix Realty Group had not purchased any other properties and had not sold any properties over the same time period. Out of the two properties, one with a total of 357,963 square feet of built space generated revenue of $4.6 million per year.

The property

The residential elevator building with 139 residential units in Bedford Stuyvesant has 357,963 square feet of built space and 38,177 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 393 feet and is 185 feet deep with a total lot size of 73,419 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $17.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received 23 housing violations, $50 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 the tax block of 234 Herkimer Street, PincusCo has identified the owners of six of the 10 commercial properties representing 318,931 square feet of the 388,315 square feet. The largest owner is Phoenix Realty Group, followed by Lazar Waldman and then Nyc Department Of Education.
There are no active new building construction projects on this tax block.

The majority, or 47 percent of the 388,315 square feet of built space are elevator buildings, with industrial buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that Phoenix Realty Group owned at least 10 commercial properties with 1,472 residential units in New York City with 1,142,944 square feet and a PincusCo-determined asset value of $182.3 million. The portfolio has $98.7 million in debt, with top three lenders as Capital One, Wells Fargo, and NYC Housing Development Corporation respectively. Within the portfolio, the bulk, or 47 percent of the 1,142,944 square feet of built space are condo properties, with elevator properties next occupying 35 percent of the space. The bulk, or 57 percent of the built space, is in Bronx, with Brooklyn next at 42 percent of the space.

The buyer

The PincusCo database currently indicates that Tredway owned at least 11 commercial properties with 2,283 residential units in New York City with 2,644,765 square feet and a PincusCo-determined asset value of $449.5 million. Within the portfolio, the bulk, or 93 percent of the 2,644,765 square feet of built space are elevator properties, with walkup properties next occupying 3 percent of the space. The bulk, or 71 percent of the built space, is in Brooklyn, with Queens next at 28 percent of the space.

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