Daniel Kaykov’s Renovation Group signs $12M dev site contract in Greenwood Heights

Daniel Kaykov, CEO of Renovation Group, signed a $12 million contract to buy land with 49,753 square feet of development rights that makes up a portion of the parcel at 259 22nd Street in Greenwood Heights, Brooklyn. The seller is St. John’s Roman Catholic Church, which will remain on a portion of the current tax lot. The existing tax lot, 13, will be divided into two tax lots, with the church remaining on 13, and a new tax lot, 14, which the Renovation Group will own. Daniel Kaykov also leads Poise Property Group.

The transaction was brokered by a JLL team including Guthrie Garvin and Brendan Maddigan, according to a set up of the property.

Daniel Kaykov signed a contract November 21, 2023, to purchase a portion of 259 22nd Street from St. John’s Roman Catholic Church. The church filed the petition as part of a requirement that religious and other nonprofits get court approval to sell large holdings. Case LINK

According to the petition,”Seller shall, at Seller’s sole cost and expense, commence and diligently complete the Subdivision to the extent within the control of Seller into two (2) separate tax lots, consisting of (i) a separate tax lot (new tax lot 14) for the Property measuring approximately 14,200 square feet of Land, and (ii) a separate tax lot (new tax lot 13) for the remainder of the existing tax lot (the “Retained Parcel”) measuring approximately 23,941 square feet of land, with title to the Retained Parcel remaining vested in Seller…

“An allocation of development rights such that the Property shall have 49,753 square feet of development rights (the “Purchaser’s Development Rights”)…

“The purchase and sale of the Property shall close the later of (i) April 20, 2024 or (ii) sixty (60) days after Seller’s receipt of all Approvals and the completion of the Subdivision (the “Closing Date”), as evidenced by the delivery of the Closing Documents as set forth in Section 8 of this Agreement (the “Closing”). Purchaser shall have the right to extend the Closing Date for an additional thirty (30) day period (the “Outside Closing Date”)…

“Seller and Purchaser each hereby represent and warrant to the other that it has not dealt with any broker in connection with the transaction contemplated in this Agreement other than JLL Capital Markets.”

The property

The property in Greenwood Heights has 31,100 square feet of built space and 22,010 square feet of additional air rights for a total buildable of 53,038 square feet according to a PincusCo analysis of city data. The parcel has three buildings with frontage of 260 feet and is 100 feet deep with a total lot size of 26,519 square feet. The lot is irregular. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $9.5 million.

Development

Over the past five years, there has been no NYC Department of Buildings new building, demolition, or alteration permit application valued at more than $20,000 filed for this parcel.

Violations and lawsuits

According to city public data, the property has received $25 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Greenwood Heights, The bulk, or 37 percent of the 16.2 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 36 percent of the space. In sales, Greenwood Heights has near average sales volume among other neighborhoods with $354.4 million in sales volume in the last two years and is the 22nd highest in Brooklyn. For development, Greenwood Heights has near average amount of major developments among other neighborhoods and is the 11th 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 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the 15 commercial properties representing 2,565 square feet of the 68,503 square feet. The identified owner is Satter A. Syed. On the tax block, there were three new building construction projects totaling 28,135 square feet. The largest is a eight-unit, 17,395 square-foot residential (R-2) building submitted by Jeff Akerman with plans filed September 6, 2019 and permitted April 19, 2021. The second largest is a four-unit, 5,712 square-foot residential (R-2) building submitted by Alexander Mejean with plans filed September 15, 2017 and it has not been permitted yet.

The surrounding

Within a 400-foot radius of 268 21 Street, PincusCo identified two commercial real estate items of interests occurred over the past 24 months. Of those two items, two were loans above $5 million totaling $25.5 million. The most recent of the two was Green Street Group in which borrowed $17 million from Bankwell Bank secured by the 0-square-foot, 24-unit rental (D1) on 20TH Street on September 16, 2022.

Direct link to the property’s ACRIS page and link to DOB NOW portal.