Chaskel Landau pays $11.6M to RedSky Capital for mixed-use in Prospect Heights

Chaskel Landau through the entity 357 Flatbush Holdings LLC paid $11.6 million to RedSky Capital’s 357 Flatbush SPE, LLC for the two-unit mixed-use building (K4) at 357 Flatbush Avenue in Prospect Heights, Brooklyn.
The deal closed on March 29, 2023 and was recorded on April 3, 2023. The property has 17,521 square feet of built space and 7,320 square feet of additional air rights for a total buildable of 24,816 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $662 and the price per buildable square foot is $467 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 seller bought the property on December 12, 2013, for $8.9 million.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Benjamin Stokes, head officer and Benjamin Bernstein, officer. The business entity is 357 Flatbush Spe,Llc. The 17,521-square-foot property generated revenue of $967,317 or $55 per square foot, according to the most recent income and expense figures.

The property

The parcel has frontage of 75 feet and is 75 feet deep with a total lot size of 6,204 square feet. The lot is irregular. 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 $3.7 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 two housing violations and $1,550 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Prospect Heights, The bulk, or 42 percent of the 6.1 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 32 percent of the space. In sales, Prospect Heights has had very little sales volume relative to other neighborhoods with $120.3 million in sales volume in the last two years. For development, Prospect Heights has near average amount of major developments among other neighborhoods and is the 18th highest in Brooklyn. It had 880,480 square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 10 of the 21 commercial properties representing 173,144 square feet of the 235,863 square feet. The largest owner is Chan Yin Yee, followed by David M. Akselrad and then Howard Katz.
On the tax block, there was one new building construction project filed totaling 15,488 square feet. It is a six-unit, 15,488 square-foot residential (R-2) building submitted by Moshe Katlowitz with plans filed October 23, 2018 and it has not been permitted yet.

The majority, or 44 percent of the 235,863 square feet of built space are elevator buildings, with mixed-use buildings next occupying 22 percent of the space.

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