AbeCo pays $2.1M to Margate Atlantic for mixed-use in Bedford Stuyvesant

AbeCo Organization through the entity 822 Plaza LLC paid $2.1 million to Margate Atlantic Properties through the entity Mbh 822 Broadway LLC for the four-unit mixed-use building (S4) at 822 Broadway in Bedford Stuyvesant, Brooklyn.
The deal closed on October 15, 2024 and was recorded on October 30, 2024. The property has 4,169 square feet of built space and 6,676 square feet of additional air rights for a total buildable of 10,856 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $494 and the price per buildable square foot is $189 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 September 21, 2018, for $2.1 million. The signatory for Margate Atlantic Properties was Michael Betesh. The signatory for AbeCo Organization was Abraham Betesh. The contract date was July 31, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer AbeCo Organization purchased two properties in two transactions for a total of $7 million and sold one property in one transaction for a total of $2 million over the past 24 months.
The seller Margate Atlantic Properties had not purchased any other properties and sold two properties in two transactions for a total of $5.5 million over the same time period. The former owner according to the Department of Housing Preservation and Development is John Vandecker, head officer. The business entity is Mbh 822 Broadway Llc.

The property

The mixed-use building with 4 residential units in Bedford Stuyvesant has 4,169 square feet of built space and 6,676 square feet of additional air rights for a total buildable of 10,856 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 101 feet deep with a total lot size of 2,714 square feet. The lot is irregular. The zoning is C4-4L which allows for up to nan times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $484,000.

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 one DOB violation and $350 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 neighborhood

In Bedford Stuyvesant, The bulk, or 35 percent of the 54.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has the 8th highest sale turnover among other neighborhoods in the city with $1.1 billion in sales volume in the last two years. For development, Bedford Stuyvesant has 2.5 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of seven of the 29 commercial properties representing 90,133 square feet of the 196,037 square feet. The largest owner is Dsa Property Group, followed by Moshe Ja and then Joel Waldman.
On the tax block, there was one new building construction project filed totaling 45,812 square feet. It is a 50-unit, 45,812 square-foot residential (R-2) building submitted by Bruchy Lefkowitz and filed by Bruchy Lefkowitz with plans filed July 18, 2023 and it has not been permitted yet.

The majority, or 41 percent of the 196,037 square feet of built space are mixed-use buildings, with elevator buildings next occupying 29 percent of the space.

The seller

The PincusCo database currently indicates that Margate Atlantic Properties owned at least three commercial properties with one residential unit in New York City with 27,992 square feet and a city-determined market value of $6.6 million. (Market value is typically about 50% of actual value.) The portfolio has $13.8 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 92 percent of the 27,992 square feet of built space are office properties, with mixed-use properties next occupying 8 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Abeco Organization owned at least 15 commercial properties with 238 residential units in New York City with 120,989 square feet and a city-determined market value of $22.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 44 percent of the 120,989 square feet of built space are elevator properties, with walkup properties next occupying 34 percent of the space. They are all located in Brooklyn.

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