AB & Sons acquires Sheepshead Bay retail from AB Capstone in distress trade, valued at $18M

AB & Sons through the entity 1100-1114 KH Owner LLC acquired from AB Capstone through the entity Ami Capital Holdings LLC the retail building (K1) at 1100 Kings Highway in Sheepshead Bay, Brooklyn and the retail building (K1) at 2067 Coney Island Avenue in Sheepshead Bay, Brooklyn. The transaction was valued at $18 million, the prior debt amount that Isaac Chetrit’s AB & Sons purchased in March 2021.
The deal closed on November 30, 2021 and was recorded on December 20, 2021.
The two properties have 29,500 square feet of built space and 79,512 square feet of additional air rights for a total buildable of 109,100 square feet according to PincusCo analysis of city data. The sale price per built square foot is $610 and the price per buildable square foot is $164 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 AB Capstone was Meir Babaev.

This is an acquisition for the value of the defaulted debt. AB Capstone bought the property for $30.5 million in 2018, and Isaac Chetrit’s AB & Sons bought the defaulted debt from Signature Bank in March 2021, Crain’s reported at the time. Meir Babaev is the director of investments at AB Capstone. Isaac Chetrit, owner of AB & Sons signed on the mortgage assignment. They are located at the same address as buyer LLC.  In March 2021, AB & Sons bought the debt valued at $18 million that was originally issued in 2018. In 2018 the debt was $21.5 million.

Within a 400-foot radius of 2067 Coney Island Avenue, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, one was in new building development. It was a new building permit application filed on February 28, 2020 for a 19,081-square-foot B building at 2077 Coney Island Avenue.
One of those four items was a sale which Yousef Althkefati bought the 37,700-square-foot, five-unit mixed-use building (K2) on 943 Kings Highway for $14.4 million from Harriet Kirshner on November 15, 2021.
Of those four items, two were loans above $5 million totaling $20.6 million. The most recent of the two was Yousef Althkefati which borrowed $9.4 million from Sterling National Bank secured by the 37,700-square-foot, five-unit mixed-use building (K2) on 943 Kings Highway on November 15, 2021.

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