Alexander Kostovetsky pays $5.3M to Forman Realty for retail in Marine Park

Alexander Kostovetsky through the entity 2484 Flatbush Ave LLC paid $5.3 million to Forman Realty Management through the entity Avenue U Bdf 4 LLC for retail building at 2484-2488 Flatbush Avenue in Marine Park, Brooklyn.
The deal closed on May 13, 2022 and was recorded on June 6, 2022. The property has 7,000 square feet of built space for a total buildable of 7,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $757 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 Forman Realty Management was Peter A. Forman. The signatory for Alexander Kostovetsky was Alexander Kostovetsky.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Alexander Kostovetsky purchased two properties in two transactions for a total of $11.9 million and has no record it sold any properties over the past 24 months.
The seller Forman Realty Management had not purchased any other properties and had not sold any properties over the same time period. The 7,000-square-foot property generated revenue of $522,395 or $75 per square foot, according to the most recent income and expense figures.

The property

The 2484-2488 Flatbush Avenue parcel has frontage of 100 feet and is 70 feet deep with a total lot size of 7,000 square feet. The zoning is C8-1 which allows for up to 1 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $2.1 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 not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Marine Park, the majority, or 77 percent of the 12 million square feet of commercial built space are 1-4 family buildings, with specialty buildings next occupying 6 percent of the space. In sales, Marine Park has not had any sales in the last two years. For development, Marine Park has had very little major development activity relative to other neighborhoods.It had 22,441 square feet of commercial and multi-family construction under development in the last two years, which represents 0.19 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The majority, or 95 percent of the 86,747 square feet of built space are retail buildings, with office buildings next occupying 5 percent of the space.

The buyer

The PincusCo database currently indicates that Alexander Kostovetsky owned at least three commercial properties with 23,572 square feet and a city-determined market value of $3.2 million. (Market value is typically about 50% of actual value.) The portfolio has $15.8 million in debt, borrowed from Valley National Bank. Within the portfolio, the bulk, or 53 percent of the 23,572 square feet of built space are industrial properties, with retail properties next occupying 35 percent of the space. The bulk, or 65 percent of the built space, is in Queens, with Brooklyn next at 35 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 2484-2488 Flatbush Avenue that occurred over the past 24 months.

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