Elo Organization sells mixed-use in Flatbush for $1.5M

Jack Elo’s Elo Organization through the entity Eljay Realty, LLC sold the mixed-use building (K4) at 768 Flatbush Avenue in Flatbush, Brooklyn to William Zeng Zhang Shao through the entity 235 BB LLC for $1.5 million. The expected use is cash flowing.
The deal closed on November 26, 2024 and was recorded on December 12, 2024. The property has 4,700 square feet of built space and 6,213 square feet of additional air rights for a total buildable of 10,900 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $313 and the price per buildable square foot is $135 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 Elo Organization was Jack Elo. The signatory for William Zeng Zhang Shao was William Zeng Zhang Shao. The contract date was October 8, 2024. Cory Rosenthal of Matthews Real Estate Investment Services was marketing the property for sale.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer William Zeng Zhang Shao had purchased any other properties and sold one property in one transaction for a total of $4.1 million over the past 24 months.
The seller Elo Organization had not purchased any other properties and sold two properties in two transactions for a total of $22 million over the same time period.

The property

The mixed-use building in Flatbush has 4,700 square feet of built space and 6,213 square feet of additional air rights for a total buildable of 10,900 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 136 feet deep with a total lot size of 2,725 square feet. The lot is irregular. 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 $597,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. 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 $1 million on this tax lot.

The neighborhood

In Flatbush, The majority, or 54 percent of the 37.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 22 percent of the space. In sales, Flatbush has 2.2 times the average sales volume among other neighborhoods with $548.8 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Flatbush has 1.4 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Brooklyn. It had 1.5 million 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.

The block

On this tax block, PincusCo has identified the owners of 13 of the 27 commercial properties representing 287,243 square feet of the 379,366 square feet. The largest owner is Talpion Fund Management, followed by Moe Greenzweig and then Jonathan Bombart.
On the tax block, there was one new building construction project filed totaling 223,482 square feet. It is a 255-unit, 223,482 square-foot residential (R-2) building submitted by BRP Companies and filed by Meredith Marshall with plans filed August 28, 2017 and permitted February 25, 2019.

The majority, or 60 percent of the 379,366 square feet of built space are elevator buildings, with walkup buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Elo Organization owned at least six commercial properties in New York City with 201,829 square feet and a city-determined market value of $53.8 million. (Market value is typically about 50% of actual value.) The portfolio has $25.1 million in debt, borrowed from JPMorgan Chase and Dime Community Bank. Within the portfolio, all identified are office properties. They are all located in Manhattan.

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