Wavecrest Management and Settlement Housing Fund through the entity 1350 Bedford Avenue LLC paid $18 million to Lewis Henkind through the entity Grant Development Associates, L.P. for the 79-unit residential elevator building (D3) at 1350 Bedford Avenue in Crown Heights, Brooklyn.
The deal closed on December 29, 2022 and was recorded on March 1, 2023. The property has 86,000 square feet of built space and 25,158 square feet of additional air rights for a total buildable of 111,228 square feet according to PincusCo analysis of city data. The sale price per built square foot is $209 and the price per buildable square foot is $161 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 Lewis Henkind was Lewis Henkind. The signatory for Wavecrest Management and Settlement Housing Fund was Joseph M. Camerata and Fazeela Siddiqui.
JPMorgan Chase financed the acquisition with a $10.9 million loan.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Wavecrest Management purchased one property in one transaction for a total of $24 million and has no record it sold any properties over the past 24 months.
The seller Lewis Henkind had not purchased any other properties and sold one property in one transaction for a total of $24 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Michael Weiss, head officer and Charles Perez, officer. The business entity is Grant Development Associates Lp. The 86,000-square-foot property generated revenue of $1.6 million or $19 per square foot, according to the most recent income and expense figures.
The 1350 Bedford Avenue parcel has frontage of 122 feet and is 233 feet deep with a total lot size of 26,483 square feet. The lot is irregular. The zoning is R7D which allows for up to 4.2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.3 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 received $1,250 in ECB penalties, one housing violation, and $1,350 in OATH penalties in the last year.
There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.
On this tax block, PincusCo has identified the owners of 15 of the 19 commercial properties representing 324,847 square feet of the 359,242 square feet. The largest owner is Townhouse Rental II, L.L.C., followed by Steven Engel and then Scottie Leaks.
There are no active new building construction projects on this tax block.
The majority, or 57 percent of the 359,242 square feet of built space are elevator buildings, with walkup buildings next occupying 36 percent of the space.
The PincusCo database currently indicates that Settlement Housing Fund owned at least 30 commercial properties in New York City with 2,262,013 square feet and a city-determined market value of $116 million. (Market value is typically about 50% of actual value.) The portfolio has $351.9 million in debt, with top three lenders as NYC Housing Development Corporation, Community Preservation Corporation, and UMB Bank respectively. Within the portfolio, the bulk, or 55 percent of the 2,262,013 square feet of built space are elevator properties, with D4 properties next occupying 21 percent of the space. The bulk, or 50 percent of the built space, is in Bronx, with Queens next at 31 percent of the space.
The PincusCo database currently indicates that Wavecrest Management owned at least nine commercial properties in New York City with 963,701 square feet and a city-determined market value of $51.6 million. (Market value is typically about 50% of actual value.) The portfolio has $16.5 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 88 percent of the 963,701 square feet of built space are elevator properties, with walkup properties next occupying 12 percent of the space. They are all located in Bronx.
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