Borough Developers pays $4.8M for dev site in Bedford Stuyvesant

Borough Developers through the entity 448 P LLC paid $4.8 million to Eliezer Meisels through the entity 446-448 Park Ave LLC for a development site at 446 and 448 Park Avenue in Bedford Stuyvesant, Brooklyn.
On these lots, there is a new building project for a seven-unit, 9,702 square-foot R-2 building submitted by Black Steel Developers and filed by Yoel Horowitz with plans filed October 27, 2023 and it has not been permitted yet.
The sale closed on July 8, 2024 and was recorded on July 18, 2024. The two properties have zero square feet of built space and 9,762 square feet of additional air rights for a total buildable of 9,762 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $494 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 Eliezer Meisels was Daniel Rabanipour. The signatory for Borough Developers was Shimon Kleinman. The contract date was February 28, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Borough Developers purchased five properties in five transactions for a total of $15.6 million and has no record it sold any properties over the past 24 months.
The seller Eliezer Meisels had not purchased any other properties and had not sold any properties over the same time period.

The property

The parcel has frontage of 22 feet and is 82 feet deep with a total lot size of 1,829 square feet. The zoning is M1-4/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $110,000.

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 not received any significant violations in the last year.

The neighborhood

In Bedford Stuyvesant, The bulk, or 35 percent of the 54.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has the 8th highest sale turnover among other neighborhoods in the city with $1.2 billion in sales volume in the last two years. For development, Bedford Stuyvesant has 2.6 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 2.8 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 446 Park Avenue, PincusCo has identified the owners of 10 of the 33 commercial properties representing 42,827 square feet of the 101,730 square feet. The largest owner is Yosef Emergi, followed by Simon Lopez and then Samson Adler.
On the tax block, there were five new building construction projects totaling 85,974 square feet. The largest is a 49,222 square-foot educational (E) building submitted by Williamsburg Infant & Early Childhood Development Center and filed by Aaron Kohn with plans filed May 13, 2016 and it has not been permitted yet. The second largest is a 12,152 square-foot 70 building submitted by Joel Weiss with plans filed December 20, 2022 and permitted September 19, 2023.

The majority, or 41 percent of the 101,730 square feet of built space are walkup buildings, with industrial buildings next occupying 39 percent of the space.

The seller

The PincusCo database currently indicates that Eliezer Meisels owned at least one commercial property with six residential units in New York City with 7,200 square feet and a city-determined market value of $945,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Borough Developers owned at least five commercial properties in New York City with 63,575 square feet and a city-determined market value of $7.4 million. (Market value is typically about 50% of actual value.) The portfolio has $48 million in debt, borrowed from S3 Capital. Within the portfolio, the bulk, or 90 percent of the 63,575 square feet of built space are V1 properties, with retail properties next occupying 10 percent of the space. They are all located in Brooklyn.

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