21-unit Brookland Capital project in Clinton Hill sells at a valuation of $15.5M, Hirshmark filed foreclosure in 2019

An entity with anonymous ownership, 927 Atlantic FS LLC, acquired a 21-unit development at 927 Atlantic Avenue in Clinton Hill, formerly owned by Brookland Capital, at a valuation of $15.5 million. The property was subject to a 2019 foreclosure action brought by Hirshmark Capital’s affiliate Atlantic Washington Funding LLC, with the total amount due for the loan, interest, taxes and other fees was just over $16 million, according to court records.
The deal closed on November 3, 2022 and was recorded on November 22, 2022. The property has 17,229 square feet of built space and 2,750 square feet of additional air rights for a total buildable of 20,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $898 and the price per buildable square foot is $773 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 12, 2015, for $4.8 million. The signatory for the foreclosed Brookland Capital property was attorney Stephen Spinelli.

Prior sales and revenue

At least four foreclosed Brookland Capital properties sold in three transactions for a total of $9.3 million over the past 24 months.

The property

The 927 Atlantic Avenue parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 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 $2.1 million.

Violations and lawsuits

There were multiple lawsuits including the foreclosure case, 500538/2019. In addition, according to city public data, the property has received five DOB violations, $125,555 in ECB penalties in the last year.

Development

On the lot, there is one active new building construction project for a 21-unit, 17,229 square-foot R-2 building. The project was developed by Boaz Gilad with plans filed August 12, 2015 and permitted August 18, 2017. On the tax lot, the most recent condominium plan was filed by ATLANTIC UPREAL LLC to create 21 residential units in a building at 927 Atlantic Avenue in Clinton Hill, Brooklyn, called 927 Atlantic Avenue Condominium, according to an July 26, 2018 submission to the New York State Attorney General. The principal of the sponsor, Atlantic Upreal LLC, was Boaz Gilad. The condo plan was never accepted, according to state records.

The block

On this tax block, PincusCo has identified the owners of four of the 15 commercial properties representing 75,942 square feet of the 130,517 square feet. The largest owner is Arbor Management Acquisition Company aka AMAC Holdings, followed by Brookland Capital and then Solomon Schwimmer.
On the tax block, there were two new building construction projects totaling 32,535 square feet. The largest is a 21-unit, 17,229-square-foot R-2 building developed by Boaz Gilad with plans filed August 12, 2015 and permitted August 18, 2017. The second largest is a 19-unit, 15,306-square-foot R-2 building developed by Boaz Gilad with plans filed October 7, 2014 and permitted August 18, 2017.

The majority, or 68 percent of the 130,517 square feet of built space are elevator buildings, with industrial buildings next occupying 23 percent of the space.

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