Eli Pavel pays $1.9M for industrial in Vinegar Hill

Eli Pavel through the entity 304 Water LLC paid $1.9 million to Diane Chalal, the Phyllis L. Rose estate, and David Rose for the industrial building (F9) at 304 Water Street in Vinegar Hill, Brooklyn.
The deal closed on December 29, 2022 and was recorded on January 18, 2023. The property has 3,700 square feet of built space and 56 square feet of additional air rights for a total buildable of 3,750 square feet according to PincusCo analysis of city data. The sale price per built square foot is $500 and the price per buildable square foot is $493 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 Diane Chalal, Phyllis L. Rose estate, and David Rose was Diane Chalal and David Rose. The signatory for Eli Pavel was Eli Pavel.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Eli Pavel had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Diane Chalal had not purchased any other properties and had not sold any properties over the same time period.

The property

The 304 Water Street parcel has frontage of 18 feet and is 100 feet deep with a total lot size of 1,875 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 $398,000.

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 not received any significant 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 Vinegar Hill, the majority, or 67 percent of the 2.1 million square feet of commercial built space are elevator buildings, with office buildings next occupying 13 percent of the space. In sales, Vinegar Hill has had very little sales volume relative to other neighborhoods with $110.7 million in sales volume in the last two years. For development, Vinegar Hill has had very little major development activity relative to other neighborhoods.

The block

On this tax block, PincusCo has identified the owners of six of the 14 commercial properties representing 92,587 square feet of the 126,626 square feet. The largest owner is E.G Development, followed by Consolidated Edison and then Breco Equities.
On the tax block, there was one new building construction project filed totaling 14,304 square feet. It is a nine-unit, 14,304-square-foot R-2 building developed by Harel Edery with plans filed January 31, 2020 and permitted December 28, 2020.

The majority, or 60 percent of the 126,626 square feet of built space are office buildings, with industrial buildings next occupying 17 percent of the space.

The buyer

The PincusCo database currently indicates that Eli Pavel owned at least two commercial properties in New York City with 25,054 square feet and a city-determined market value of $6.8 million. (Market value is typically about 50% of actual value.) The portfolio has $11.8 million in debt, borrowed from Spencer Savings Bank and IceCap Group. Within the portfolio, the bulk, or 87 percent of the 25,054 square feet of built space are elevator properties, with C3 properties next occupying 13 percent of the space. The bulk, or 87 percent of the built space, is in Brooklyn, with Manhattan next at 13 percent of the space.

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