Edward Ostad pays $4M to Abingdon Square for residential walkup in Sunset Park

Edward Ostad through the entity 5723 Partners LLC paid $4 million to Abingdon Square through the entity 368 Myrtle LLC for eight-unit residential walkup building at 5723 5th Avenue in Sunset Park, Brooklyn.
The deal closed on March 23, 2022 and was recorded on April 6, 2022.

The property has 7,681 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $520 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 October 31, 2014, for $2.1 million. The signatory for Abingdon Square was Benjamin Atkins. 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 five properties in four transactions for a total of $24.8 million and has no record it sold any properties over the past 24 months.
The seller Abingdon Square had not purchased any other properties and sold one properties in one transactions for a total of $51 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Benjamin Atkins, head officer and Ivan Villarruel, officer. The business entity is 368 Myrtle Llc. The 7,681-square-foot property generated revenue of $148,320 or $19 per square foot, according to the most recent income and expense figures.

The property

The 5723 5th Avenue parcel has frontage of 25 feet on 5th Avenue and is 100 feet deep with a total lot size of 2,517 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.5 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 three housing violations and $150 in OATH penalties in the last year.

Development

For the tax lot building, it received an alteration initial certificate of occupancy on September 27, 2017. 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 28 percent of the 49.6 million square feet of commercial built space are 1-4 family buildings, with industrial buildings next occupying 21 percent of the space. In sales, Sunset Park has 1.8 times the average sales volume among other neighborhoods with $500.6 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.It had 751,643 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.

The block

On this tax block, PincusCo has identified the owners of two of the 15 commercial properties representing 23,076 square feet of the 114,739 square feet. The two identified owners are Chang En Jiang and Humphrey Pizzolo. There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 239,510 square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 24 percent of the space.

The buyer

The PincusCo database currently indicates that Edward Ostad owned at least 19 commercial properties with 505,105 square feet and a city-determined market value of $83 million. (Market value is typically about 50% of actual value.) The portfolio has $177.5 million in debt, with top three lenders as Signature Bank, New York Community Bank, and Greystone & Co. respectively. Within the portfolio, the bulk, or 56 percent of the 505,105 square feet of built space are residential elevator properties, with residential walkup properties next occupying 39 percent of the space. The bulk, or 62 percent of the built space, is in Manhattan, with Bronx next at 23 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 5723 5th Avenue that occurred over the past 24 months.

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