Buyers through Meridian Properties pay $11.6M to California family for 65-unit rental in Midwood

Anonymous buyers in care of Meridian Properties through the entity Gt 1270 E18th Realty LLC (and others) paid $11.6 million to M. Milo Mandel through the entity Alas Realty Corp. for the 65-unit residential elevator building (D1) at 1270 East 18th Street in Midwood, Brooklyn and vacant strip of land (V0) abutting the property along the Bay Avenue side of the building.
The deal closed on June 23, 2022 and was recorded on July 13, 2022. The two properties have 64,800 square feet of built space and 41,200 square feet of additional air rights for a total buildable of 106,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $178 and the price per buildable square foot is $108 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 M. Milo Mandel was Daniel Rothman. The seller family has resided in California for decades. The seller entity acquired the building in 1938. Louis Mandel signed on a mortgage-related document in 1972. The four new owner entities are in care of Meridian Properties.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Meridian Properties on its own or on behalf of others purchased eight properties in seven transactions for a total of $51.8 million and sold one property in one transaction for a total of $6.4 million over the past 24 months.
The seller M. Milo Mandel had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Milo Mandel, head officer and Rick Manero, agent. The business entities are Bpc Mgmt Corp and Alas Realty Corp. Out of the two properties, one with a total of 64,800 square feet of built space generated revenue of $1.1 million per year.

The property

The 1270 East 18th Street parcel has frontage of 125 feet and is 192 feet deep with a total lot size of 24,000 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 $3.3 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 Midwood, the majority, or 60 percent of the 25.1 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 14 percent of the space. In sales, Midwood has 1.2 times the average sales volume among other neighborhoods with $392 million in sales volume in the last two years and is the 12th highest in Brooklyn. For development, Midwood has had very little major development activity relative to other neighborhoods.It had 535,296 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block of 1270 East 18th Street, PincusCo has identified the owners of one of the 16 commercial properties representing 84,984 square feet of the 215,017 square feet. The identified owner is Ditmas Management Corp.. There are no active new building construction projects on this tax block.

The majority, or 89 percent of the 215,517 square feet of built space are residential elevator buildings, with mixed-use buildings next occupying 9 percent of the space.

The buyer

The PincusCo database currently indicates that Meridian Properties owned at least 104 commercial properties in New York City with 3,373,423 square feet and a city-determined market value of $182.3 million. (Market value is typically about 50% of actual value.) The portfolio has $72.3 million in debt, with top three lenders as Signature Bank, Dime Community Bank, and New York Community Bank respectively. Within the portfolio, the bulk, or 58 percent of the 3,373,423 square feet of built space are elevator properties, with walkup properties next occupying 41 percent of the space. They are all located in Brooklyn.

Direct link to Acris document. link