Bluestone Group acquires dev site in Borough Park through bankruptcy

Lender Bluestone Group through the entity 4202 Holdings LLC acquired from the former developer Samuel Pfeiffer through the entity 4202 Partners LLC for the development site (V1) at 4202 Fort Hamilton Parkway in Borough Park, Brooklyn. The transfer was valued at $12.3 million, and was acquired through a credit bid.
The transfer closed on October 19, 2023 and was recorded on October 25, 2023. The property has zero square feet of built space and 41,693 square feet of additional air rights for a total buildable of 41,693 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $294 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 December 18, 2017, for $5.3 million. The signatory for Samuel Pfeiffer was Samuel Pfeiffer. The signatory for Bluestone Group was Eli Tabak. Samuel Pfeiffer is also known as Shabsi Pfeiffer. This sale was related to two bankruptcy cases in the Eastern District of New York, 19-44444 and 20-42438, with Eli Tabak’s Bluestone Group winning the property through its credit bid. The property was marketed for sale in 2022 by Greg Corbin and Chaya Milworn, now of Northgate Real Estate Group but at the time with Rosewood Realty Group.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Bluestone Group had purchased any other properties and sold six properties in six transactions for a total of $33 million over the past 24 months.
The seller Samuel Pfeiffer had not purchased any other properties and had not sold any properties over the same time period.

The property

The parcel has frontage of 101 feet and is 180 feet deep with a total lot size of 17,158 square feet. The lot is irregular. 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 $1.1 million.

Development

On the lot, there is one active new building construction project for a four-unit, 5,508 square-foot R-2 building. The project was submitted by Shabsi Pfeiffer with plans filed December 29, 2014 and permitted December 18, 2015.

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 1.5 times the average sales volume among other neighborhoods with $527.1 million in sales volume in the last two years and is the 15th highest in Brooklyn. For development, Borough Park has had very little major development activity relative to other neighborhoods.It had 859,866 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 one of the five commercial properties representing zero square feet of the 7,350 square feet. The identified owner is Maguire Capital Group.
On the tax block, there were seven new building construction projects totaling 262,074 square feet. The largest is a 102,263 square-foot business (B) building submitted by Shabsi Pfeiffer with plans filed September 17, 2018 and it has not been permitted yet. The second largest is a 96,898 square-foot 57 building submitted by HCS and filed by Shulim Greenfeld with plans filed February 1, 2023 and it has not been permitted yet.

The majority, or 100 percent of the 7,350 square feet of built space are mixed-use buildings, with office buildings next occupying 0 percent of the space.

The buyer

The PincusCo database currently indicates that Bluestone Group owned at least 15 commercial properties with 53 residential units in New York City with 238,360 square feet and a city-determined market value of $61.9 million. (Market value is typically about 50% of actual value.) The portfolio has $67.9 million in debt, borrowed from Signature Bank and TriState Capital Bank. Within the portfolio, the bulk, or 30 percent of the 238,360 square feet of built space are mixed-use properties, with industrial properties next occupying 23 percent of the space. The bulk, or 59 percent of the built space, is in Manhattan, with Bronx next at 21 percent of the space.

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