Isaac Hager, Daryl Hagler pay $42.4M for Crown Heights dev site with 293-unit plans filed

CORRECTED: Cornell Realty Management’s Isaac Hager and Daryl Hagler, who also runs Centers Health Care, through the entity 960 Franklin LLC paid $42.4 million to Abraham Zev Golombeck through the entity H.P.G. Associates, Inc. for two parcels including the industrial building (F5) 960 Franklin Avenue in Crown Heights, Brooklyn. The alternate addresses are 124 and 130 Montgomery Street.

On these lots, there is one active new building construction project for a 293-unit, 198,310 square-foot R-2 building. The project was submitted by Abraham Zev Golombeck with plans filed June 14, 2022 and it has not been permitted yet. A source familiar with the acquisition said the new owners are planning on a 304-unit project.

The deal closed on November 2, 2022 and was recorded on November 14, 2022. The two properties have 88,800 square feet of built space and 110,873 square feet of additional air rights for a total buildable of 199,839 square feet according to PincusCo analysis of city data. The sale price per built square foot is $476 and the price per buildable square foot is $211 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 Abraham Zev Golombeck was Abraham Zev Golombeck. The signatory for the buyers was Daryl Hagler.

The Real Deal reported on this sale, and identified Meridian Capital’s Lipa Lieberman, David Schechtman and Abie Kassin as brokers on the sale.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 124 Montgomery Street.

Prior sales and revenue

The seller Abraham Zev Golombeck had not purchased any other properties and had not sold any properties over the same time period. The two properties with a total of 88,800 square feet of built space generated revenue of $1.4 million per year or $16 per square foot. The sale price per square foot was $477.

The property

The 124 Montgomery Street parcel has frontage of 125 feet and is 287 feet deep with a total lot size of 54,131 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.6 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.

The neighborhood

In Crown Heights, the bulk, or 38 percent of the 46.6 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 1.4 times the average sales volume among other neighborhoods with $470.2 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Crown Heights has 2.7 times the average amount of major developments relative to other neighborhoods and is the 7th 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 6 percent of the neighborhood’s built space.

The block

On the tax block of 124 Montgomery Street, PincusCo has identified the owners of eight of the 13 commercial properties representing 350,838 square feet of the 452,031 square feet. The largest owner is United Management, followed by GRJ Real Estate and then Steven C. Neuman.
On the tax block, there were four new building construction projects totaling 507,014 square feet. The largest is a 293-unit, 198,310-square-foot R-2 building developed by Abraham Zev Golombeck with plans filed June 14, 2022 and it has not been permitted yet.The second largest is a 168-unit, 235,482-square-foot R-2 building developed by Ian Bruce Eichner with plans filed January 5, 2022 and it has not been permitted yet.

the majority, or 61 percent of the 452,031 square feet of built space are elevator buildings, with industrial buildings next occupying 23 percent of the space.

The buyer

The PincusCo database currently indicates that Centers Health Care owned at least three commercial properties in New York City with 308,350 square feet and a city-determined market value of $33.8 million. (Market value is typically about 50% of actual value.) The portfolio has $20 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 67 percent of the 308,350 square feet of built space are specialty properties, with industrial properties next occupying 33 percent of the space. The bulk, or 67 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.

Correction: A prior version of this post identified Centers Health Care as the buyer. Although Daryl Hagler is associated with Centers Health Care, this is not a purchase for the nursing home, according to a source familiar with the transaction.

Direct link to Acris document. link