David Halberstam pays $13.2M for 43-unit dev site in Fort Greene

David Halberstam through the entity 340 Myrtle Development LLC paid $13.2 million to Marisol Diaz through the entity F&D Myrtle Realty Co., LLC for the 43-unit development site at 340 Myrtle Avenue at the corner of Carlton Avenue in Fort Greene, Brooklyn.

On the lot, there is one active new building construction project for a 43-unit, 33,308 square-foot R-2 building. The project was submitted by Marisol Diaz with plans filed August 23, 2021 and permitted May 9, 2022.
The sale closed on August 18, 2023 and was recorded on August 28, 2023. The property has 7,335 square feet of built space and 25,682 square feet of additional air rights for a total buildable of 33,032 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,802 and the price per buildable square foot is $400 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 Marisol Diaz was Marisol Diaz. The signatory for David Halberstam was David Halberstam. The contract date was September 1, 2022.
The purchase was financed with an $8.9 million loan from S3 Capital.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer David Halberstam purchased four properties in four transactions for a total of $22.6 million and has no record it sold any properties over the past 24 months.
The seller Marisol Diaz had not purchased any other properties and had not sold any properties over the same time period. The 7,335-square-foot property generated revenue of $157,849 or $22 per square foot, according to the most recent income and expense figures.

The property

The parcel has frontage of 106 feet and is 80 feet deep with a total lot size of 8,258 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $836,000.

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 received three DOB violations, $6,250 in ECB penalties, and $6,950 in OATH penalties in the last year.

The neighborhood

In Fort Greene, The bulk, or 34 percent of the 12.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 23 percent of the space. In sales, Fort Greene has 1.6 times the average sales volume among other neighborhoods with $582.5 million in sales volume in the last two years and is the 11th highest in Brooklyn. For development, Fort Greene has 2.3 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Brooklyn. It had 2.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 18 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the eight commercial properties representing 31,345 square feet of the 116,488 square feet. The identified owner is G-Way Management.
On the tax block, there were two new building construction projects totaling 35,179 square feet. The largest is a 43-unit, 33,308 square-foot residential (R-2) building submitted by Marisol Diaz with plans filed August 23, 2021 and permitted May 9, 2022. The second largest is a one-unit, 1,871 square-foot residential (R-3) building submitted by John Bouratoglou with plans filed January 20, 2021 and it has not been permitted yet.

The majority, or 56 percent of the 116,488 square feet of built space are walkup buildings, with elevator buildings next occupying 33 percent of the space.

The buyer

The PincusCo database currently indicates that David Halberstam owned at least 10 commercial properties with 35 residential units in New York City with 42,470 square feet and a city-determined market value of $10.9 million. (Market value is typically about 50% of actual value.) The portfolio has $77.7 million in debt, with top three lenders as S3 Capital, Valley National Bank, and Bank of Princeton respectively. Within the portfolio, the bulk, or 32 percent of the 42,470 square feet of built space are elevator properties, with mixed-use properties next occupying 18 percent of the space. They are all located in Brooklyn.

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