Beitel Group pays $3.5M to expand dev site in Borough Park
Beitel Group through the entity 1533-1541 60 Street LLC paid $3.5 million to Abraham M. Klein for the industrial building (E1) at 1541 60th Street in Borough Park, Brooklyn.
The deal closed on February 27, 2024 and was recorded on February 28, 2024. The property has 4,000 square feet of built space and 12,018 square feet of additional air rights for a total buildable of 16,024 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $875 and the price per buildable square foot is $218 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 Abraham M. Klein was Abraham M. Klein. The signatory for Beitel Group was Binyamin Beitel. The contract date was February 27, 2024. Beitel Group bought the neighboring parcel for $4 million in May 2023 and later filed plans for a 32,000-square-foot office building at the site.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Beitel Group purchased four properties in four transactions for a total of $68.8 million and has no record it sold any properties over the past 24 months.
The seller Abraham M. Klein had not purchased any other properties and had not sold any properties over the same time period.
The property
The industrial building in Borough Park has 4,000 square feet of built space and 12,018 square feet of additional air rights for a total buildable of 16,024 square feet according to a PincusCo analysis of city data. The parcel has frontage of 40 feet and is 100 feet deep with a total lot size of 4,006 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $366,000.
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 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 $1 million on this tax lot.
The neighborhood
In Borough Park, The bulk, or 25 percent of the 23.2 million square feet of commercial built space are specialty buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Borough Park has 1.8 times the average sales volume among other neighborhoods with $536.7 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Borough Park has near average amount of major developments among other neighborhoods and is the 17th highest in Brooklyn. It had 927,189 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of four of the 10 commercial properties representing 24,613 square feet of the 72,109 square feet. The largest owner is William Nussen, followed by Joshua Dembitzer and then Braverhood.
On the tax block, there was one new building construction project filed totaling 32,054 square feet. It is a 32,054 square-foot 56 building submitted by Beitel Group and filed by Binyamin Beitel with plans filed July 24, 2023 and it has not been permitted yet.
The majority, or 52 percent of the 72,109 square feet of built space are industrial buildings, with mixed-use buildings next occupying 29 percent of the space.
The buyer
The PincusCo database currently indicates that Beitel Group owned at least 10 commercial properties with 112 residential units in New York City with 328,687 square feet and a city-determined market value of $34.6 million. (Market value is typically about 50% of actual value.) The portfolio has $159.2 million in debt, with top three lenders as MF1 Capital, BridgeCity Capital, and Cerco Funding respectively. Within the portfolio, the bulk, or 36 percent of the 328,687 square feet of built space are industrial properties, with elevator properties next occupying 33 percent of the space. The bulk, or 61 percent of the built space, is in Brooklyn, with Bronx next at 39 percent of the space.
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