Empire Builders Group NY pays $2.8M for 10-unit dev site in South Slope

Empire Builders Group NY through the entity Empire On Seventh LLC paid $2.8 million to Harel Edery’s EDRE Development through the entity 431 Owner, LLC for the 10-unit development site (V1) at 431 7th Avenue in South Slope, Brooklyn. The expected use is ground up development.
On the lot, there is one active new building construction project, B00669824, for a 10-unit, 7,339 square-foot R-2 building. The project was submitted by EDRE Development and filed by Harel Edery with plans filed June 27, 2022 and it has not been permitted yet.
The deal closed on October 10, 2024 and was recorded on October 31, 2024. The property has zero square feet of built space and 7,338 square feet of additional air rights for a total buildable of 7,338 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $374 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 April 26, 2022, for $1.9 million. The signatory for Harel Edery was Neil Kupferman. The signatory for Empire Builders Group NY was Tal Bloch. The contract date was July 2, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Empire Builders Group NY had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller EDRE Development has purchased five properties for about $12.5 million and had not sold any properties over the same time period.

The property

The parcel has frontage of 25 feet and is 97 feet deep with a total lot size of 2,446 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 $423,000.

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 $1,200 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project, B00669824, for a 10-unit, 7,339 square-foot R-2 building. The project was submitted by EDRE Development and filed by Harel Edery with plans filed June 27, 2022 and it has not been permitted yet.

The neighborhood

In South Slope, The bulk, or 47 percent of the 4.6 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, South Slope has had very little sales volume relative to other neighborhoods with $196.7 million in sales volume in the last two years. For development, South Slope has had very little major development activity relative to other neighborhoods.It had 384,505 square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the five commercial properties representing 225,340 square feet of the 237,038 square feet. The two identified owners are Dhs and S.W. Management.
On the tax block, there was one new building construction project filed totaling 7,339 square feet. It is a 10-unit, 7,339 square-foot residential (R-2) building submitted by EDRE Development and filed by Harel Edery with plans filed June 27, 2022 and it has not been permitted yet.

The majority, or 92 percent of the 237,038 square feet of built space are specialty buildings, with mixed-use buildings next occupying 5 percent of the space.

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