Yechiel Newhouse pays $16M to L+M Development Partners, BFC Partners for affordable in Williamsburg

Yechiel Newhouse through the entity Kent Preservation LLC, paid $16 million to L+M Development Partners and BFC Partners through the entity Kent Affordable Housing LLC, for the 140-unit property at 450 Kent Avenue in Williamsburg, Brooklyn.
The deal closed on January 19, 2023 and was recorded on January 26, 2023. The property has 171,432 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $93 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 L+M Development Partners and BFC Partners was Brandon Baron and Donald Capoccia. The signatory for Yechiel Newhouse was Yechiel Newhouse.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Yechiel Newhouse purchased five properties in five transactions for a total of $107.2 million and has no record it sold any properties over the past 24 months.
The seller L+M Development Partners purchased eight properties in four transactions for a total of $67.1 million and sold seven properties in seven transactions for a total of $146.8 million over the same time period.

The property

The 450 Kent Avenue parcel has a total lot size of 171,432 square feet. The property has a 421a exemption that started in 2007 and expires in 2032. The city-designated market value for the property in 2022 is $29.1 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 block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 788,829 square feet of the 794,064 square feet. The largest owner is Williamsburg Montessori, followed by Spitzer Enterprises and then Naftali Group.
On the tax block, there were four new building construction projects totaling 1,470,600 square feet. The largest is a 605-unit, 602,188-square-foot R-2 building developed by Eliot Spitzer with plans filed December 17, 2014 and permitted July 21, 2016. The second largest is a 249-unit, 380,375-square-foot R-2 building developed by Michael Witek with plans filed January 5, 2021 and it has not been permitted yet.

The majority, or 70 percent of the 779,082 square feet of built space are elevator buildings, with industrial buildings next occupying 30 percent of the space.

The seller

The PincusCo database currently indicates that L+M Development Partners owned at least 219 commercial properties in New York City with 19,270,731 square feet and a city-determined market value of $1.9 billion. (Market value is typically about 50% of actual value.) The portfolio has $2.9 billion in debt, with top three lenders as NYC Housing Development Corporation, Wells Fargo, and Barings respectively. Within the portfolio, the bulk, or 84 percent of the 19,270,731 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 46 percent of the built space, is in Brooklyn, with Manhattan next at 36 percent of the space.
The PincusCo database currently indicates that BFC Partners owned at least five commercial properties in New York City with 422,242 square feet and a city-determined market value of $19.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 80 percent of the 422,242 square feet of built space are elevator properties, with specialty properties next occupying 18 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Yechiel Newhouse owned at least 37 commercial properties in New York City with 1,178,412 square feet and a city-determined market value of $76 million. (Market value is typically about 50% of actual value.) The portfolio has $178.8 million in debt, with top three lenders as New York Community Bank, Santander Bank, and Investors Bank respectively. Within the portfolio, the bulk, or 59 percent of the 1,178,412 square feet of built space are elevator properties, with walkup properties next occupying 41 percent of the space. The bulk, or 65 percent of the built space, is in Bronx, with Manhattan next at 35 percent of the space.

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