Aron Stark pays $3M to Zalmen Wagschal for East New York dev site

Aron Stark through the entity 1451 Sutter LLC paid $3 million to Zalmen Wagschal through the entity 1451 Sutter Ave LLC for the development parcels (V0) at 1451 and 1453 Sutter Avenue in East New York, Brooklyn.
On these lots, there were two new building construction projects totaling 16,929 square feet. The largest is a 10-unit, 9,479 square-foot residential (R-2) building submitted by 1451-1453 Sutter Ave, Llc with plans filed December 24, 2018 and permitted June 10, 2022. The second largest is a 10-unit, 7,450 square-foot residential (R-2) building submitted by 1451-1453 Sutter Ave, Llc with plans filed December 24, 2018 and permitted March 18, 2021.
The deal closed on September 29, 2023 and was recorded on October 16, 2023. The two properties have zero square feet of built space and 17,997 square feet of additional air rights for a total buildable of 17,997 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $166 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 Zalmen Wagschal was Zalmen Wagschal. The signatory for Aron Stark was Aron Stark. The contract date was September 29, 2023.

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 1453 Sutter Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Aron Stark had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Zalmen Wagschal had not purchased any other properties and had not sold any properties over the same time period.

The property

The parcel has frontage of 33 feet and is 100 feet deep with a total lot size of 3,300 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $188,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $34,290 in OATH penalties in the last year.

The neighborhood

In East New York, The bulk, or 40 percent of the 44.5 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 2.5 times the average sales volume among other neighborhoods with $904 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, East New York is the 6th most active neighborhood among other neighborhoods. It had 4.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The seller

The PincusCo database currently indicates that Zalmen Wagschal owned at least 10 commercial properties with 89 residential units in New York City with 80,356 square feet and a city-determined market value of $11 million. (Market value is typically about 50% of actual value.) The portfolio has $59.1 million in debt, with top three lenders as Citibank, Extensia Financial, and Hanover Community Bank respectively. Within the portfolio, the bulk, or 77 percent of the 80,356 square feet of built space are walkup properties, with hotel properties next occupying 20 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Aron Stark owned at least two commercial properties with 12 residential units in New York City with 10,125 square feet and a city-determined market value of $2 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Brooklyn.

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