Yellow Jacket Ventures pays $1.4M to Aulder Capital for 15-unit walkup in Flatbush

Yellow Jacket Ventures through the entity Ocean Heights Holdings LLC paid $1.4 million to Aulder Capital through the entity E. 21st And Newkirk LLC for the 15-unit residential walkup building (C1) at 390 East 21st Street in Flatbush, Brooklyn.
The deal closed on August 23, 2023 and was recorded on August 28, 2023. The property has 11,520 square feet of built space and 1,606 square feet of additional air rights for a total buildable of 13,116 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $117 and the price per buildable square foot is $102 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.)

Aulder Capital bought the property on August 17, 2015, for $2.5 million. The signatory for Aulder Capital was Robert Johnson. The signatory for Yellow Jacket Ventures was Akiva J. Kurland. The contract date was June 20, 2023. Robert Johnson is a partner and COO at Aulder Capital, according to a LinkedIn page.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Yellow Jacket Ventures purchased one property in one transaction for a total of $2.2 million and has no record it sold any properties over the past 24 months.
The seller Aulder Capital purchased four properties in three transactions for a total of $45.6 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Jonah Bamberger, head officer and Lucien Zito, officer. The business entity is E 21st And Newkirk Llc.

The property

The residential walkup building with 15 residential units in Flatbush has 11,520 square feet of built space and 1,606 square feet of additional air rights for a total buildable of 13,116 square feet according to a PincusCo analysis of city data. The parcel has frontage of 41 feet and is 80 feet deep with a total lot size of 3,279 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.7 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 received three DOB violations, 99 housing violations, and $25 in OATH penalties 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 this tax block, PincusCo has identified the owners of four of the six commercial properties representing 231,260 square feet of the 275,380 square feet. The largest owner is Malek Management, followed by Juda Rosenfeld and then Jacob Kempler Family Partnership.
There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 275,380 square feet of built space are elevator buildings, with walkup buildings next occupying 25 percent of the space.

The seller

The PincusCo database currently indicates that Aulder Capital owned at least four commercial properties with 132 residential units in New York City with 83,722 square feet and a city-determined market value of $17.6 million. (Market value is typically about 50% of actual value.) The portfolio has $94 million in debt, with top three lenders as High End Hospitality Corp., Principal Global Investors, and Greystone & Co. respectively. Within the portfolio, the bulk, or 61 percent of the 83,722 square feet of built space are walkup properties, with elevator properties next occupying 39 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Yellow Jacket Ventures owned at least three commercial properties with 38 residential units in New York City with 36,970 square feet and a city-determined market value of $3.7 million. (Market value is typically about 50% of actual value.) The portfolio has $17.7 million in debt, borrowed from Northeast Community Bank and Citibank. Within the portfolio, the bulk, or 82 percent of the 36,970 square feet of built space are walkup properties, with development properties next occupying 18 percent of the space. The bulk, or 58 percent of the built space, is in Bronx, with Brooklyn next at 42 percent of the space.

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