Coney Island dev site flips for $46M, up from $44.6M five months ago

The anonymously owned entity Bayview Complex LLC paid $46 million to Oceangate Family Holdings LLC for a development parcel building (G7) at Bay View Avenue in Coney Island, Brooklyn. Oceangate Family Holdings LLC bought the property on April 25, 2023 from Starrett Companies for approximately $44.6 million, according to a person familiar with the transaction composed of about $22 million in air rights and $22.6 million for as-of-right land. Only the $22.6 million transfer was recorded, making this appear a much larger flip than it was.

The parcel with the air rights can accommodate about 680,000 square feet of affordable residential use, according to the source. The new buyer is a Brooklyn affordable housing developer, the source said.

There are no active development plans filed for the parcel. The approximate address using Google Streetview is 2713 West 33rd Street.

The new deal closed on September 13, 2023 and was recorded on September 21, 2023. The property has zero square feet of built space and 680,000 square feet of development rights for affordable housing, resulting in a price per square foot of $67 per square foot.
The signatory for the seller, Oceangate Family Holdings, was Binyomin Fishman. The signatory for the buyer Bayview Complex LLC was the Brooklyn attorney Jeffrey Zwick. The contract date was May 1, 2023.
The authorized signatory for Oceangate Family Holdings when the entity purchased it was Lipa Zicherman who acted as a buyer’s broker in that transaction, while an individual named Gary Segal was identified as the person to whose attention correspondence should he directed when Oceangate Family Holdings borrowed $17.5 million to make the April 2023 purchase.

The property

The parcel has frontage of zero feet and is zero feet deep with a total lot size of 140,784 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 $4.2 million. The most recent loan totaled $17.5 million and was provided by DH1 Holdings on April 25, 2023.

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.

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 Coney Island, The majority, or 68 percent of the 14.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 10 percent of the space. In sales, Coney Island has had very little sales volume relative to other neighborhoods with $280.7 million in sales volume in the last two years. For development, Coney Island has 1.5 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Brooklyn. It had 1.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The majority, or 67 percent of the 209,050 square feet of built space are elevator buildings, with walkup buildings next occupying 33 percent of the space.

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