CAVU Property Group pays $12.8M to Jackson Group for development in Flatlands

CAVU Property Group through the entity Nostrand Land LLC paid $12.8 million to Jackson Group through the entity Jackson Opportunity LLC for the development parcel (V1) at 2251 Nostrand Avenue in Flatlands, Brooklyn.

This is second sale Jackson Group has completed from a larger parcel it bought from Alex Adjmi’s ACHS Management in March 2019 for $19 million. At the time the tax lot had 296 feet of frontage along Nostrand. The parcel was then divided into two tax lots, with a smaller tax lot, number 16, created and sold for $6.1 million in 2020 to hotel developer Maheshchand Ratanji.
This more recent deal closed on May 23, 2023 and was recorded on May 26, 2023. CAVU financed the purchase with a $6.5 million loan from Popular Bank.
The signatory for Jackson Group was Elliott Chehebar. The signatory for CAVU Property Group was Steve Hurwitz.

On this parcel ACHS filed a new building plan for a 38-unit, 61,959 square-foot retail and residential building submitted by A&H Acquisitions and filed by Joshua Posner with plans filed January 8, 2018, but it was never permitted. A LoopNet listing showed a rendering.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer CAVU Property Group purchased one other development site for $6.8 million at 458 St. Marks Avenue and has no record it sold any properties over the past 24 months.
The seller Jackson Group purchased four properties in four transactions for a total of $15.2 million and sold two properties in two transactions for a total of $10.3 million over the same time period.

The property

The parcel has frontage of 226 feet and is 100 feet deep with a total lot size of 22,624 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.5 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 $3,125 in ECB penalties in the last year.

The neighborhood

In Flatlands, The bulk, or 35 percent of the 6.3 million square feet of commercial built space are elevator buildings, with mixed-use buildings next occupying 19 percent of the space. In sales, Flatlands has had very little sales volume relative to other neighborhoods with $106.5 million in sales volume in the last two years. For development, Flatlands has had very little major development activity relative to other neighborhoods.It had 272,808 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the six commercial properties representing 194,650 square feet of the 194,650 square feet. The largest owner is Maheshchand M. Ratanji, followed by Juda Rosenfeld and then Allan Lebovits.
On the tax block, there were three new building construction projects totaling 175,341 square feet. The largest is a 79,232 square-foot business (B) building submitted by Joyland Management and filed by Judy Wolcowitz with plans filed September 28, 2015 and it has not been permitted yet. The second largest is a 38-unit, 61,959 square-foot mercantile (M) building submitted by A&H Acquisitions and filed by Joshua Posner with plans filed January 8, 2018 and it has not been permitted yet.

The majority, or 87 percent of the 194,650 square feet of built space are elevator buildings, with retail buildings next occupying 13 percent of the space.

The seller

The PincusCo database currently indicates that Jackson Group owned at least five commercial properties in New York City with 121,192 square feet and a city-determined market value of $24.8 million. (Market value is typically about 50% of actual value.) The portfolio has $27.8 million in debt, borrowed from Signature Bank and Safra National Bank. Within the portfolio, the bulk, or 87 percent of the 121,192 square feet of built space are retail properties, with mixed-use properties next occupying 13 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Cavu Property Group owned at least one commercial property with 41 residential units in New York City with 46,359 square feet and a city-determined market value of $7 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single elevator property. It is located in Brooklyn.

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