Daniel Group pays $2.6M for 35-unit corner dev site in Cypress Hills

Daniel Group through the entity Fulton IC NY Dev LLC paid $2.6 million to Itzchak Zivari through the entity Van Siclen Development LLC for 35-unit development site (V1) at 2795 Fulton Street in Cypress Hills, Brooklyn, at the corner of Van Siclen Avenue.
On the lot, there is one new building construction project for a 35-unit, 34,400 square-foot R-2 building. The project was developed by Itzchak Zivari with plans filed August 2, 2017 and it has not been permitted yet.
The deal closed on February 10, 2023 and was recorded on February 21, 2023. The property has zero square feet of built space and 30,000 square feet of additional air rights for a total buildable of 30,000 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $87 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 July 29, 2011, for $425,000. The signatory for Itzchak Zivari was Itzchak Zivari. The signatory for Daniel Group was Ilan Cohen.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Daniel Group purchased 12 properties in two transactions for a total of $11.2 million and sold two properties in two transactions for a total of $11.1 million over the past 24 months.
The seller Itzchak Zivari had not purchased any other properties and had not sold any properties over the same time period.

The property

The 2795 Fulton Street parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. 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 $664,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

The neighborhood

In Cypress Hills, the bulk, or 24 percent of the 8.5 million square feet of commercial built space are mixed-use buildings, with specialty buildings next occupying 22 percent of the space. In sales, Cypress Hills has had very little sales volume relative to other neighborhoods with $93.7 million in sales volume in the last two years. For development, Cypress Hills has near average amount of major developments among other neighborhoods and is the 18th highest in Brooklyn. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing 43,572 square feet of the 73,078 square feet. The identified owner is Stanley Gallant.
On the tax block, there was one new building construction project filed totaling 34,400 square feet. It is a 35-unit, 34,400-square-foot R-2 building developed by Itzchak Zivari with plans filed August 2, 2017 and it has not been permitted yet.

The majority, or 60 percent of the 73,078 square feet of built space are elevator buildings, with walkup buildings next occupying 40 percent of the space.

The buyer

The PincusCo database currently indicates that Daniel Group owned at least 33 commercial properties in New York City with 298,513 square feet and a city-determined market value of $55.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 48 percent of the 298,513 square feet of built space are elevator properties, with walkup properties next occupying 34 percent of the space. The bulk, or 39 percent of the built space, is in Queens, with Brooklyn next at 24 percent of the space.

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