Anshei Lubavitch as buyer signs contract to buy for two mixed-use properties in East Flatbush

Anshei Lubavitch as buyer signed a contract to buy from David Fischer through the entity 572-574 Albany Ave. LLC the two-unit mixed-use building (S2) at 572 Albany Avenue in East Flatbush, Brooklyn and two-unit mixed-use building (S2) at 574 Albany Avenue in East Flatbush, Brooklyn.
The deal closed on September 22, 2022 and was recorded on September 30, 2022. The two properties have 4,712 square feet of built space and 4,522 square feet of additional air rights for a total buildable of 9,234 square feet according to PincusCo analysis of city data.
The signatory for David Fischer was David Fischer. The signatory for Anshei Lubavitch was Levi Shloush. The property has a $3 million mortgage from 2018.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 572 Albany Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Anshei Lubavitch had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller David Fischer had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes David Fischer, head officer and Hersh Zarchi, site manager. The business entity is 572-574 Albany Ave. Llc.

The property

The 572 Albany Avenue parcel has frontage of 19 feet and is 100 feet deep with a total lot size of 1,900 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $528,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $1,050 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 $5 million on this tax lot.

The neighborhood

In East Flatbush, the bulk, or 32 percent of the 42.5 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 23 percent of the space. In sales, East Flatbush has had very little sales volume relative to other neighborhoods with $191.3 million in sales volume in the last two years. For development, East Flatbush has 2.1 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Brooklyn. It had 2 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 was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On the tax block of 572 Albany Avenue, PincusCo has identified the owners of three of the 10 commercial properties representing 40,689 square feet of the 121,273 square feet. The two identified owners are Shmaya Glick and Joseph Freund.
There are no active new building construction projects on this tax block.

The majority, or 92 percent of the 121,273 square feet of built space are walkup buildings, with mixed-use buildings next occupying 8 percent of the space.

The seller

The PincusCo database currently indicates that David Fischer owned at least 13 commercial properties in New York City with 539,979 square feet and a city-determined market value of $26.3 million. (Market value is typically about 50% of actual value.) The portfolio has $56.1 million in debt, borrowed from New York Community Bank. Within the portfolio, the bulk, or 53 percent of the 539,979 square feet of built space are elevator properties, with walkup properties next occupying 47 percent of the space. They are all located in Brooklyn.

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