Dahlia Kalter pays $2M to Mendel Deutsch entities for property in Bedford Stuyvesant, ending complex litigation

Dahlia Kalter through the entity Bed Stuy Malcolm X Blvd Partners LLC paid $2 million to Mendel Deutsch through the entity 306 Malcolm NY LLC for three adjacent office buildings (O8) at 306 Malcolm X Boulevard, 308 Malcolm X Boulevard and 304A Malcolm X Boulevard in Bedford Stuyvesant, Brooklyn.

The deal closed on December 8, 2022 and was recorded on December 21, 2022.
These properties were part of complex litigation in which Dahlia Kalter, wife of Mark Nordlicht, the disgraced former head of hedge fund Platinum Partners, alleged she was a part owner of the three properties, but despite that the properties were apparently sold in 2020 for $6 million and Kalter did not benefit from that sale. She brought the suit 53572/2021 in March 2021 in Westchester County, where she lives. The suit was discontinued through a stipulation on December 14, 2022.
The three properties have 9,565 square feet of built space and 2,820 square feet of additional air rights for a total buildable of 12,384 square feet according to PincusCo analysis of city data. The sale price per built square foot is $209 and the price per buildable square foot is $161 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 Mendel Deutsch was Mendel Deutsch. The signatory for Dahlia Kalter was Dahlia Kalter.

A previous owner of the properties was Boaz Gilad, the bankrupt owner of Brookland Capital.

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 306 Malcolm X Blvd.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Dahlia Kalter had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Mendel Deutsch had not purchased any other properties and sold one property in one transaction for a total of $2.3 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Boaz Gilad, head officer and Sam Goldberg, site manager. The business entity is Upreal Gaston Llc. The three properties with a total of 9,565 square feet of built space generated revenue of $251,136 per year or $26 per square foot. The sale price per square foot was $209.

The property

The 306 Malcolm X Blvd parcel has frontage of 16 feet and is 86 feet deep with a total lot size of 1,376 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Bedford Stuyvesant / Expanded Stuyvesant Heights Historic District. The city-designated market value for the property in 2022 is $420,000.

Violations and lawsuits

The properties were involved in two lawsuits and zero bankruptcies over the past two years. The other suit was a $4.5 million commercial foreclosure concerning a loan filed on July 29, 2021, by ConnectOne Bank against Mendel Deutsch. In addition, according to city public data, the properties have 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 $5 million on this tax lot.

The neighborhood

In Bedford Stuyvesant, the bulk, or 34 percent of the 53.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, Bedford Stuyvesant has 2.3 times the average sales volume among other neighborhoods with $805.1 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, Bedford Stuyvesant has 3.8 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Brooklyn. It had 4 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On the tax block of 306 Malcolm X Blvd, PincusCo has identified the owners of six of the 15 commercial properties representing 61,127 square feet of the 100,333 square feet. The largest owner is Mendel Deutsch, followed by Felicia Colon and then Charles Atwell.
There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 100,333 square feet of built space are walkup buildings, with mixed-use buildings next occupying 26 percent of the space.

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