DAX Real Estate pays $4M to Mendel Gold for residential walkup in Williamsburg

DAX Real Estate through the entity 154 North 9th Owner LLC paid $4 million to Mendel Gold through the entity The North Ninth Street Group LLC for midblock five-unit residential walkup building at 154 North 9th Street in Williamsburg, Brooklyn.
The deal closed on December 10, 2021 and was recorded on March 4, 2022.The property has 3,750 square feet of built space and 1,250 square feet of additional air rights for a total buildable of 5,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,066 and the price per buildable square foot is $800 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 August 25, 2020, for $3.1 million. The signatory for Mendel Gold was Mendel Gold. The signatory for DAX Real Estate was Daniel Hedaya. Daniel Hedaya is the managing partner of DAX Real Estate.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer DAX Real Estate purchased four properties in three transactions for a total of $19.1 million and sold one property in one transaction for a total of $34 million over the past 24 months.
The seller Mendel Gold purchased one property in one transaction for a total of $3.1 million and sold four properties in three transactions for a total of $15 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Daniel Miller, head officer and Gerald Miller, officer. The business entity was 154 N 9 Street Llc. The 3,750-square-foot property generated revenue of $94,913 or $25 per square foot, according to the most recent income and expense figures.

The property

The 154 North 9th Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. 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 $1.2 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received one DOB violation and seven housing 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 Williamsburg, the bulk, or 35 percent of the 65.1 million square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 19 percent of the space. In sales, Williamsburg has the 9th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Williamsburg is the 6th most active neighborhood among other neighborhoods. It had 5.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space. There were eight pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 10 of the 23 commercial properties representing 54,900 square feet of the 114,400 square feet. The largest owner is Manjula Mukahopadhyay, followed by Stanley Panek and then Krystyna Malik. There are no active new building construction projects on this tax block.

The majority, or 58 percent of the 160,464 square feet of built space are residential walkup buildings, with 1-4 family buildings next occupying 22 percent of the space.

The seller

The PincusCo database currently indicates that Mendel Gold owned at least two commercial properties with 18,084 square feet and a city-determined market value of $3.4 million. (Market value is typically about 50% of actual value.) The portfolio has $7.8 million in debt, borrowed from Arbor Realty Trust. Within the portfolio, all identified are residential walkup properties. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that DAX Real Estate owned at least three commercial properties with 18,028 square feet and a city-determined market value of $5.2 million. (Market value is typically about 50% of actual value.) The portfolio has $16.9 million in debt, borrowed from IberiaBank and Sterling National Bank. Within the portfolio, all identified are mixed-use properties. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 154 North 9th Street, Pincusco identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on July 6, 2021 for the $399,978 renovation of 5,800-square-foot COM building with zero residential units at 132 Bedford Avenue.
One of those five items was a sale which L3 Capital bought the 2,510-square-foot, one-unit mixed-use building (K2) on 132 Bedford Avenue and 13 other properties for $145 million from RedSky Capital on January 8, 2021.
Of those five items, three were loans above $5 million totaling $171.1 million. The most recent of the three was L3 Capital which borrowed $122.6 million from JPMorgan Chase secured by the 2,510-square-foot, one-unit mixed-use building (K2) on 132 Bedford Avenue and 12 other properties on January 15, 2021.

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