Esther Herman pays $4M to Eddie T. Freeman for 18-unit dev site in Bed Stuy

Esther Herman through the entity 211 Nostrand Avenue LLC paid $4 million to Eddie T. Freeman for the specialty building (Z9) at 211 Nostrand Avenue in Bed Stuy, Brooklyn. Plans were filed in April 2022 for an 18-unit residential building.
The deal closed on August 24, 2022 and was recorded on September 9, 2022. The property has 300 square feet of built space and 16,372 square feet of additional air rights for a total buildable of 16,650 square feet according to PincusCo analysis of city data. The sale price per built square foot is $13,333 and the price per buildable square foot is $240 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 Eddie T. Freeman was Eddie T. Freeman. The signatory for Esther Herman was Abraham Lowy.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Esther Herman had purchased any other properties and sold one property in one transaction for a total of $2.5 million over the past 24 months.
The seller Eddie T. Freeman had not purchased any other properties and had not sold any properties over the same time period.

The property

The 211 Nostrand Avenue parcel has frontage of 55 feet and is 100 feet deep with a total lot size of 5,550 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 $110,000.

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

On these lots, there is one active new building construction project for a 18-unit, 15,330-square-foot R-2 building. The project was developed by Issac Lebo with plans filed April 14, 2022 and it has not been permitted yet.

The neighborhood

In Bed Stuy, the bulk, or 34 percent of the 53.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, Bed Stuy has 2.1 times the average sales volume among other neighborhoods with $693.1 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, Bed Stuy is the 10th most active neighborhood among other neighborhoods. It had 4.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 16 commercial properties representing 68,126 square feet of the 89,552 square feet. The largest owner is IMPACCT Housing Development Fund, followed by Mike Silber and then Jayde Okunubi.
There are two active new building construction projects totaling 20,139 square feet. The largest is a 18-unit, 15,330-square-foot R-2 building developed by Issac Lebo with plans filed April 14, 2022 and it has not been permitted yet.The second largest is a 37-unit, 4,809-square-foot R-2 building developed by Rona Reodica with plans filed May 1, 2020 and it has not been permitted yet.

The majority, or 76 percent of the 89,552 square feet of built space are walkup buildings, with retail buildings next occupying 8 percent of the space.

The buyer

The PincusCo database currently indicates that Esther Herman owned at least four commercial properties in New York City with 30,560 square feet and a city-determined market value of $4.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 74 percent of the 30,560 square feet of built space are walkup properties, with elevator properties next occupying 26 percent of the space. They are all located in Brooklyn.

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