Edward Ostad pays $3.8M to Joseph Hentze for 7-unit walkup in Sunset Park

Edward Ostad through the entity 4802 Partners LLC paid $3.8 million to Joseph Hentze through the entity 4802 4th Ave. Realty LLC for seven-unit residential walkup building (C7) at 4802 4th Avenue in Sunset Park, Brooklyn.
The deal closed on June 9, 2022 and was recorded on July 12, 2022. The property has 9,000 square feet of built space and 1,057 square feet of additional air rights for a total buildable of 10,068 square feet according to PincusCo analysis of city data. The sale price per built square foot is $416 and the price per buildable square foot is $372 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 January 11, 2012, for $1.1 million. The signatory for Joseph Hentze was Joseph Hentze. The signatory for Edward Ostad was Edward Ostad.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Edward Ostad purchased eight properties in six transactions for a total of $37.3 million and has no record it sold any properties over the past 24 months.
The seller Joseph Hentze had not purchased any other properties and sold one property in one transaction for a total of $6 million over the same time period. The former owners according to the Department of Housing Preservation and Development include Joseph Hentze, head officer and Palma Marzigliano, officer. The business entity is 4802 4th Ave Realty Llc.

The property

The 4802 4th Avenue parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,517 square feet. 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 $1.3 million.

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 received $50 in OATH penalties 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 Sunset Park, the bulk, or 29 percent of the 35.7 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 27 percent of the space. In sales, Sunset Park has 1.4 times the average sales volume among other neighborhoods with $454.7 million in sales volume in the last two years and is the 10th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.It had 825,146 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There were three 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 two of the 10 commercial properties representing 33,840 square feet of the 61,639 square feet. The two identified owners are Delvis Valdes and Alessandro Pirozzi.

The majority, or 53 percent of the 61,880 square feet of built space are residential walkup buildings, with mixed-use buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that Joseph Hentze owned at least eight commercial properties in New York City with 167,149 square feet and a city-determined market value of $32.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 66 percent of the 167,149 square feet of built space are elevator properties, with mixed-use properties next occupying 18 percent of the space. The bulk, or 84 percent of the built space, is in Queens, with Brooklyn next at 16 percent of the space.

The buyer

The PincusCo database currently indicates that Edward Ostad owned at least 23 commercial properties in New York City with 561,461 square feet and a city-determined market value of $86.3 million. (Market value is typically about 50% of actual value.) The portfolio has $190.1 million in debt, with top three lenders as Signature Bank, New York Community Bank, and Greystone & Co. respectively. Within the portfolio, the bulk, or 51 percent of the 561,461 square feet of built space are elevator properties, with walkup properties next occupying 43 percent of the space. The bulk, or 64 percent of the built space, is in Manhattan, with Bronx next at 21 percent of the space.

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