Visabe Corp. pays $7.8M to Sugar Hill for 10-unit walkup in Brooklyn Heights

Visabe Corp. through the entity 16 Monroe Place Realty Co LLC paid $7.8 million to Sugar Hill Capital Partners through the entity 16 Monroe Residences, LLC for midblock 10-unit residential walkup building at 16 Monroe Place in Brooklyn Heights, Brooklyn.
The deal closed on May 11, 2022 and was recorded on June 6, 2022. The property has 9,450 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $830 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 June 20, 2017, for $6.6 million. The signatory for Sugar Hill Capital Partners was Margaret Grossman. The signatory for Visabe Corp. was Salomon Cojab Moadeb.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Visabe Corp. had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Sugar Hill Capital Partners had not purchased any other properties and sold four properties in four transactions for a total of $18.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes David Schorr, head officer and Doron Yaghoubi, site manager. The business entity is 16 Monroe Residences, Llc.

The property

The 16 Monroe Place parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the Brooklyn Heights Historic District. The city-designated market value for the property in 2022 is $5.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Brooklyn Heights, the bulk, or 38 percent of the 21.1 million square feet of commercial built space are residential elevator buildings, with office buildings next occupying 15 percent of the space. In sales, Brooklyn Heights has had very little sales volume relative to other neighborhoods with $228.8 million in sales volume in the last two years. For development, Brooklyn Heights has had very little major development activity relative to other neighborhoods.It had 261,202 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the six commercial properties representing 15,720 square feet of the 163,987 square feet. The two identified owners are Sugar Hill Capital Partners and John Behette. There are no active new building construction projects on this tax block.

The majority, or 69 percent of the 714,641 square feet of built space are residential elevator buildings, with specialty buildings next occupying 20 percent of the space.

The seller

The PincusCo database currently indicates that Sugar Hill Capital Partners owned at least 101 commercial properties with 1,822,094 square feet and a city-determined market value of $235.1 million. (Market value is typically about 50% of actual value.) The portfolio has $145.6 million in debt, with top three lenders as Signature Bank, Citibank, and New York Community Bank respectively. Within the portfolio, the bulk, or 56 percent of the 1,822,094 square feet of built space are walkup properties, with elevator properties next occupying 34 percent of the space. The bulk, or 70 percent of the built space, is in Manhattan, with Brooklyn next at 30 percent of the space.

The buyer

The PincusCo database currently indicates that Visabe Corp. owned at least one commercial property with 7,342 square feet and a city-determined market value of $719,000. (Market value is typically about 50% of actual value.) The portfolio has $6.1 million in debt, borrowed from Patch of Land, Inc.. The portfolio consists of at least a single N2 property. It is located in Brooklyn.

Surrounding

Within a 400-foot radius of 16 Monroe Place, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, three were loans above $5 million totaling $73.1 million. The most recent of the three was Pete Eliou which borrowed $11 million from Investors Bank secured by the 31,692-square-foot, 42-unit rental (D7) on 115 Henry Street on January 27, 2022.

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