Bnos Educational Trust pays $6.7M for two specialty properties in Borough Park

Bnos Educational Trust through the entity Jacob Zehnwirth, As Trustee paid $6.7 million to Machon Bais Yaacov through the entity Machon Bais Yaacov for specialty building (W2) at 1683 42nd Street in Borough Park, Brooklyn and specialty building (W2) at 1681 42nd Street in Borough Park, Brooklyn.
The deal closed on September 29, 2022 and was recorded on October 7, 2022. The two properties have 23,548 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $284 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 Machon Bais Yaacov was Menachem Shriyovich. The signatory for Bnos Educational Trust was Jacob Zehnwirth, Moishe Y. Kramer, and Leo Kaufman.

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 1683 42nd Street.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Bnos Educational Trust had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Machon Bais Yaacov had not purchased any other properties and had not sold any properties over the same time period.

The property

The 1683 42nd Street parcel has frontage of 60 feet and is 60 feet deep with a total lot size of 3,490 square feet. The lot is irregular. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.4 million.

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 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 Borough Park, the bulk, or 23 percent of the 23.3 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 had very little sales volume relative to other neighborhoods with $253.6 million in sales volume in the last two years. For development, Borough Park has near average amount of major developments among other neighborhoods and is the 17th highest in Brooklyn. It had 1.1 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.

The block

On the tax block of 1683 42nd Street, PincusCo has identified the owners of seven of the 13 commercial properties representing 52,118 square feet of the 89,411 square feet. The largest owner is Congregation and Yeshiva Machzikei Hadas, followed by Chaim Simkowitz and then City of New York.
There are no active new building construction projects on this tax block.

The majority, or 49 percent of the 89,411 square feet of built space are walkup buildings, with specialty buildings next occupying 44 percent of the space.

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