Urban Resource Institute pays $16.8M for 34-unit apartment in East Flatbush

The nonprofit Urban Resource Institute through the entity Pals Place Housing Development Fund Corporation paid $16.8 million to an affiliate of Heights Advisors through the entity Dream 123 LLC for the 34-unit residential elevator building (D3) at 1317 New York Avenue in East Flatbush, Brooklyn.
The deal closed on May 8, 2024 and was recorded on May 29, 2024. The property has 31,174 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $538 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 23, 2015, for $1.9 million. The signatory for Heights Advisors was Howard M. Brickner. The signatory for Urban Resource Institute was Nathaniel Fields. The contract date was December 5, 2023. Urban Resource Institute operates PALS, “People & Animals Living Safely (PALS) program, helping domestic violence survivors and their pets stay together and heal together.” Nathaniel Fields is CEO of URI.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Urban Resource Institute purchased five properties in four transactions for a total of $118.3 million and has no record it sold any properties over the past 24 months.
The seller Heights Advisors had not purchased any other properties and sold two properties in one transactions for a total of $64 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Rachel Foster, head officer and Charles Carroll, lessee. The business entities are Urban Resource Institute, Urban Resource Institute., and Dream Trust.

The property

The residential elevator building with 34 residential units in East Flatbush has 31,174 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 80 feet and is 100 feet deep with a total lot size of 8,000 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 $6.3 million.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 18, 2019. 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 one of the two commercial properties representing 388,800 square feet of the 419,974 square feet. The identified owner is Clipper Equity.

All properties are elevator.

The seller

The PincusCo database currently indicates that Heights Advisors owned at least one commercial property with 165 residential units in New York City with 136,490 square feet and a city-determined market value of $20.4 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single elevator property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Urban Resource Institute owned at least five commercial properties with 96 residential units in New York City with 51,556 square feet and a city-determined market value of $5.6 million. (Market value is typically about 50% of actual value.) The portfolio has $160.2 million in debt, with top three lenders as 951 Olmstead Avenue Contract-Backed Pass-Through Trust, UMB Bank, and KeyBank respectively. Within the portfolio, the bulk, or 100 percent of the 51,556 square feet of built space are N2 properties, with development properties next occupying 0 percent of the space. The bulk, or 53 percent of the built space, is in Manhattan, with Bronx next at 47 percent of the space.

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