BWH Group pays $8M for dev site in Sheepshead Bay

BWH Group through the entity 1667 Sheepshead Bay LLC paid $8 million to Ianthe Kallas-Bortz through the entity 1667 Realty Holding LLC for the development site (V1) at 1667 Sheepshead Bay Road in Sheepshead Bay, Brooklyn.
On the lot, there was one active major alteration construction project for a 41,366 square-foot B building. The project was submitted by Ianthe Kallas-Bortz with plans filed September 23, 2014.
The sale closed on May 7, 2024 and was recorded on May 8, 2024. The property has zero square feet of built space and 23,658 square feet of additional air rights for a total buildable of 23,658 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $338 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 Ianthe Kallas-Bortz was Ianthe Kallas-Bortz. The signatory for BWH Group was Daniel Roy Grinshteyn. The contract date was November 30, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer BWH Group purchased three properties in two transactions for a total of $6.8 million and has no record it sold any properties over the past 24 months.
The seller Ianthe Kallas-Bortz had not purchased any other properties and sold two properties in one transactions for a total of $3 million over the same time period.

The property

The parcel has frontage of 83 feet and is 119 feet deep with a total lot size of 9,736 square feet. The lot is irregular. The zoning is C4-2 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $459,000.

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 not received any significant violations in the last year.

The neighborhood

In Sheepshead Bay, The bulk, or 43 percent of the 26.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Sheepshead Bay has 1.7 times the average sales volume among other neighborhoods with $457.8 million in sales volume in the last two years and is the 14th highest in Brooklyn. For development, Sheepshead Bay has had very little major development activity relative to other neighborhoods.It had 862,871 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. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the 29 commercial properties representing 47,974 square feet of the 202,817 square feet. The largest owner is Oleksandr Nad, followed by Maheshchand Ratanji and then Anar A. Danilov.
On the tax block, there was one new building construction project filed totaling 38,618 square feet. It is a 27-unit, 38,618 square-foot residential (R-2) building submitted by Moses Kupferstein with plans filed March 23, 2022 and permitted February 21, 2024.

The majority, or 26 percent of the 202,817 square feet of built space are walkup buildings, with mixed-use buildings next occupying 18 percent of the space.

The buyer

The PincusCo database currently indicates that BWH Group owned at least three commercial properties in New York City with 5,809 square feet and a city-determined market value of $1.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 65 percent of the 5,809 square feet of built space are specialty properties, with retail properties next occupying 35 percent of the space. They are all located in Brooklyn.

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