David Halberstam pays $12.8M for dev site in Downtown Brooklyn where Cheskel Schwimmer filed plans

David Halberstam through the entity 127 Concord Realty LLC paid $12.8 million to Henry Hin Swee Su through H. D. J. Realty Corp. for the midblock development site at 127 Concord Street in Downtown Brooklyn, Brooklyn.
Cheskel Schwimmer of Chess Builders, on February 16, filed a permit application for construction of a 73-unit, 48,558-square-foot mixed-use building at 131 Concord Street in Downtown Brooklyn, Brooklyn.

The deal closed on May 10, 2022 and was recorded on May 31, 2022. The property has 7,650 square feet of built space and 33,879 square feet of additional air rights for a total buildable of 41,538 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,673 and the price per buildable square foot is $308 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 PincusCo database currently indicates that David Halberstam owned at least three commercial properties with 8,900 square feet and a city-determined market value of $2.6 million. (Market value is typically about 50% of actual value.) The portfolio has $8.5 million in debt, borrowed from Bank of Princeton. Within the portfolio, the bulk, or 51 percent of the 8,900 square feet of built space are office properties, with mixed-use properties next occupying 27 percent of the space. They are all located in Brooklyn.

Prior sales and revenue

The 7,650-square-foot property generated revenue of $137,665 or $18 per square foot, according to the most recent income and expense figures.

The property

The 127 Concord Street parcel has frontage of 50 feet and is 138 feet deep with a total lot size of 6,900 square feet. The zoning is C6-2 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential. The city-designated market value for the property in 2022 is $615,000.

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.

Development

On these lots, there is one active new building construction project for a 73-unit, 69,162-square-foot R-2 building. The project was developed by Cheskel Schwimmer with plans filed February 16, 2022 and it has not been permitted yet.

The neighborhood

In Downtown Brooklyn, the bulk, or 36 percent of the 26.8 million square feet of commercial built space are office buildings, with residential elevator buildings next occupying 29 percent of the space. In sales, Downtown Brooklyn has 1.3 times the average sales volume among other neighborhoods with $365.7 million in sales volume in the last two years and is the 10th highest in Brooklyn. For development, Downtown Brooklyn has 2.9 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Brooklyn. It had 2.6 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

The majority, or 62 percent of the 20,150 square feet of built space are residential walkup buildings, with industrial buildings next occupying 38 percent of the space.

Surrounding

Within a 400-foot radius of 127 Concord Street, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, one was in new building development. It was a new building permit application filed on December 29, 2020 for a 36,191-square-foot R-2 building with 27 residential units at 219 Jay Street.
One of those three items was a sale which Tankhouse bought the 8,671-square-foot, one-unit office building (O2) on 219 Jay Street for $12.5 million from Bernard Dillenberger on November 18, 2020.
One of those three items was a loan which Tankhouse borrowed $25 million from Bank Hapoalim secured by the 8,671-square-foot, one-unit office building (O2) on 219 Jay Street on December 9, 2021.

Direct link to Acris document. link