Fruchthandler family’s FBE Limited sells Flatbush shelter for $45.9M, up from $31M in 2016

The entity BH Tilden LLC with signatory Manny Shurka of the Israel-based Signature Investment Group paid $45.9 million to FBE Limited through the entity EBF Tilden Avenue III LLC for the 117-unit shelter building (HR) at 2518-2520 Tilden Avenue in Flatbush, Brooklyn.
The deal closed on October 25, 2022 and was recorded on October 31, 2022. The property has 86,360 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $531 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 December 22, 2016, for $31 million. The signatory for FBE Limited was Yehoshua Leib Fruchthandler. The signatory for Signature Investment Group was Manny Shurka.
In April 2022, FBE Limited refinanced a $26.5 million loan from Signature Bank secured by the property.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Signature Investment Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller FBE Limited purchased three properties in three transactions for a total of $76 million and sold five properties in three transactions for a total of $253.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Yitzchok Fruchthandler, head officer and Daniel Candelario, site manager. The business entity is Tilden Hall. The 86,360-square-foot property generated revenue of $7.7 million or $89 per square foot, according to the most recent income and expense figures.

The property

The 2518-2520 Tilden Avenue parcel has frontage of 112 feet and is 245 feet deep with a total lot size of 33,900 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $20.1 million.The most recent loan totaled $26.5 million and was provided by Signature Bank on April 1, 2022.

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 received three DOB violations, $9,750 in ECB penalties, 11 housing violations, and $11,200 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 $5 million on this tax lot.

The neighborhood

In Flatbush, the majority, or 55 percent of the 37.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Flatbush has near average sales volume among other neighborhoods with $303.4 million in sales volume in the last two years and is the 20th highest in Brooklyn. For development, Flatbush has near average amount of major developments among other neighborhoods and is the 17th highest in Brooklyn. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the nine commercial properties representing 108,110 square feet of the 147,054 square feet. The largest owner is FBE Limited, followed by Mark Weinberger and then C. Harrop-Williams.
On the tax block, there were two new building construction projects totaling 17,624 square feet. The largest is a 19-unit, 12,809-square-foot R-2 building developed by Mikel Jeremias with plans filed July 31, 2019 and it has not been permitted yet.The second largest is a seven-unit, 4,815-square-foot R-2 building developed by Ka Yau with plans filed August 16, 2018 and it has not been permitted yet.

The majority, or 59 percent of the 147,054 square feet of built space are hotel buildings, with walkup buildings next occupying 39 percent of the space.

The seller

The PincusCo database currently indicates that FBE Limited owned at least 29 commercial properties in New York City with 984,340 square feet and a city-determined market value of $140.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 61 percent of the 984,340 square feet of built space are elevator properties, with rental condo properties next occupying 18 percent of the space. The bulk, or 84 percent of the built space, is in Brooklyn, with Manhattan next at 14 percent of the space.

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