Builders Group USA pays $6.3M for office in Greenwood Heights

Builders Group USA through the entity 275 20th Street LLC paid $6.3 million to Mohamed Mowad through the entity XYZ Two Way Radio Service, Inc. for the office building (O2) at 275 20th Street in Greenwood Heights, Brooklyn.
The deal closed on January 13, 2025 and was recorded on February 5, 2025. The property has 15,200 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $417 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 Mohamed Mowad was Mohamed Mowad. The signatory for Builders Group USA was Yitzchok Salamon. The contract date was March 6, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Builders Group USA purchased two properties in two transactions for a total of $11.1 million and has no record it sold any properties over the past 24 months.
The seller Mohamed Mowad had not purchased any other properties and had not sold any properties over the same time period. The 15,200-square-foot property generated revenue of $502,664 or $33 per square foot, according to the most recent income and expense figures.

The property

The office building in Greenwood Heights has 15,200 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 55 feet and is 100 feet deep with a total lot size of 5,500 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.1 million.

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 received $1,250 in ECB penalties and $2,450 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 4, 2019. On the lot, there is one active major alteration construction project, B01048395, for a 51-unit, 17,825 square-foot R-2 building. The project was submitted by Builders Group USA and filed by Yitzi Salamon with plans filed November 18, 2024 and it has not been permitted yet.

The neighborhood

In Greenwood Heights, The bulk, or 37 percent of the 16.2 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 36 percent of the space. In sales, Greenwood Heights has 1.5 times the average sales volume among other neighborhoods with $412.6 million in sales volume in the last two years and is the 14th highest in Brooklyn. For development, Greenwood Heights has had very little major development activity relative to other neighborhoods.It had 543,351 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 12 of the 26 commercial properties representing 65,497 square feet of the 159,904 square feet. The largest owner is Martin Mittelman, followed by Zinoviy Zaltsman and then Nicholas Kotsonis.
On the tax block, there were three new building construction projects totaling 61,194 square feet. The largest is a 36-unit, 46,356 square-foot residential (R-2) building submitted by Zinoviy Zaltsman| Aleksandr Zaltsman and filed by Aleksandr Zaltsman with plans filed June 25, 2024 and it has not been permitted yet. The second largest is a eight-unit, 9,834 square-foot residential (R-2) building submitted by Keivan Farhagian and filed by Keivan Farhadian with plans filed September 13, 2022 and permitted May 12, 2023.

The majority, or 58 percent of the 159,904 square feet of built space are walkup buildings, with mixed-use buildings next occupying 32 percent of the space.

The buyer

The PincusCo database currently indicates that Builders Group USA owned at least one commercial property in New York City, a vacant lot, and a city-determined market value of $288,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property.

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