Abraham Schwartz pays $5.4M to Leser Group for industrial in East New York
Abraham Schwartz through the entity Great Two LLC paid $5.4 million to Leser Group through the entity 315 Liberty Ave LLC for the industrial building (F4) at 315 Liberty Avenue in East New York, Brooklyn.
The deal closed on October 6, 2022 and was recorded on October 24, 2022. The property has 28,400 square feet of built space and 11,600 square feet of additional air rights for a total buildable of 40,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $190 and the price per buildable square foot is $135 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 October 3, 2017, for $5 million. The signatory for Leser Group was Abraham Leser. The signatory for Abraham Schwartz was Abraham Schwartz.
Prior sales and revenue
Prior to this transaction, PincusCo has no record that the buyer Abraham Schwartz had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Leser Group purchased one property in one transaction for a total of $2.2 million and sold six properties in three transactions for a total of $229.8 million over the same time period.
The property
The 315 Liberty Avenue parcel has frontage of 200 feet and is 100 feet deep with a total lot size of 20,000 square feet. The zoning is M3-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.6 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 received two DOB violations, $13,750 in ECB penalties, and $13,975 in OATH penalties in the last year.
Development
On the lot, there is one active major alteration construction project for a 50,000 square-foot B building. The project was developed by Benzion Beniaker with plans filed August 1, 2018 and it has not been permitted yet.
The neighborhood
In East New York, the bulk, or 40 percent of the 44.6 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has 2.2 times the average sales volume among other neighborhoods with $778.2 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, East New York has 3.4 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Brooklyn. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.
The block
On the tax block, there was one new building construction project filed totaling 20,000 square feet. It is a 20,000-square-foot S-2 building developed by Benny Imani with plans filed June 4, 2015 and it has not been permitted yet.
the majority, or 86 percent of the 77,747 square feet of built space are industrial buildings, with office buildings next occupying 14 percent of the space.
The seller
The PincusCo database currently indicates that Leser Group owned at least 32 commercial properties in New York City with 971,866 square feet and a city-determined market value of $109.1 million. (Market value is typically about 50% of actual value.) The portfolio has $535.5 million in debt, with top three lenders as UMB Bank, Tel Aviv Stock Exchange bondholders, and Axos Bank respectively. Within the portfolio, the bulk, or 47 percent of the 971,866 square feet of built space are elevator properties, with specialty properties next occupying 35 percent of the space. The bulk, or 66 percent of the built space, is in Brooklyn, with Bronx next at 34 percent of the space.
The buyer
The PincusCo database currently indicates that Abraham Schwartz owned at least 12 commercial properties in New York City with 182,106 square feet and a city-determined market value of $14.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 71 percent of the 182,106 square feet of built space are walkup properties, with elevator properties next occupying 29 percent of the space. They are all located in Brooklyn.
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