Edward Ostad pays $5.7M for two mixed-use, retail building in Carroll Gardens

Edward Ostad through the entity Meo 431 Court Street, LLC paid $5.7 million to the entity Elas Realty, LLC for the three-unit mixed-use building (S3) at 433 Court Street and the three-unit mixed-use building (S3) at 431 Court Street in Carroll Gardens, Brooklyn. The expected use is cash flowing. The retail is occupied by Citizens Bank.
The deal closed on November 26, 2024 and was recorded on December 19, 2024. The two properties have 8,200 square feet of built space and 1,408 square feet of additional air rights for a total buildable of 9,600 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $689 and the price per buildable square foot is $588 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 the seller was Allegrino Sale. The signatory for Edward Ostad was Edward Ostad. The contract date was August 16, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Edward Ostad purchased nine properties in eight transactions for a total of $34.9 million and has no record it sold any properties over the past 24 months.
The seller Allegrino Sale had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Allegrino Sale, head officer and Michael Sale, shareholder. The business entity is Elas Realty Llc.

The property

The mixed-use buildings with 6 residential units in Carroll Gardens has 8,200 square feet of built space and 1,408 square feet of additional air rights for a total buildable of 9,600 square feet according to a PincusCo analysis of city data. The parcel has frontage of 40 feet and is 80 feet deep with a total lot size of 3,200 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 $1.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $100 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 $1 million on this tax lot.

The neighborhood

In Carroll Gardens, The bulk, or 44 percent of the 3.6 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 33 percent of the space. In sales, Carroll Gardens has 1.6 times the average sales volume among other neighborhoods with $417.6 million in sales volume in the last two years and is the 12th highest in Brooklyn. For development, Carroll Gardens has had very little major development activity relative to other neighborhoods.It had 136,066 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On the tax block of 433 Court Street, PincusCo has identified the owners of two of the 14 commercial properties representing 16,584 square feet of the 63,124 square feet. The two identified owners are Edward Lubin and Salvatore Galofaro.
There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 63,124 square feet of built space are mixed-use buildings, with walkup buildings next occupying 43 percent of the space.

The buyer

The PincusCo database currently indicates that Edward Ostad owned at least 35 commercial properties with 691 residential units in New York City with 657,572 square feet and a city-determined market value of $124.1 million. (Market value is typically about 50% of actual value.) The portfolio has $214.6 million in debt, with top three lenders as Signature Bank, New York Community Bank, and Amalgamated Bank respectively. Within the portfolio, the bulk, or 48 percent of the 657,572 square feet of built space are walkup properties, with elevator properties next occupying 43 percent of the space. The bulk, or 64 percent of the built space, is in Manhattan, with Bronx next at 18 percent of the space.

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