Gagan Chadha pays $14.5M new hotel in Crown Heights

Gagan Chadha through the entity 1462 Maya Investors Inc. paid $14.5 million to Harshad S. Patel through the entity 1462 Atlantic Avenue LLC for the newly completed 58-unit hotel building (H3) at 1462 Atlantic Avenue in Crown Heights, Brooklyn. The expected use is cash flowing.
The deal closed on January 30, 2025 and was recorded on February 10, 2025. The property has 20,850 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $695 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 7, 2015, for $2 million. The signatory for Harshad S. Patel was Harshad S. Patel . The signatory for Gagan Chadha was Gagan Chadha. The contract date was September 1, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Gagan Chadha had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Harshad S. Patel had not purchased any other properties and sold one property in one transaction for a total of $17.2 million over the same time period.

The property

The hotel building with 58 residential units in Crown Heights has 20,850 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 80 feet and is 100 feet deep with a total lot size of 8,000 square feet. The zoning is C8-2 which allows for up to 2 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $4.9 million. The most recent loan totaled 0.0 and was provided by East End Developers LLC on September 25, 2023.

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 $75 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 27, 2024. 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 Crown Heights, The bulk, or 39 percent of the 46.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 2 times the average sales volume among other neighborhoods with $541.8 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Crown Heights has 1.4 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Brooklyn. It had 1.6 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 six of the 24 commercial properties representing 72,466 square feet of the 309,783 square feet. The largest owner is Harshad S. Patel, followed by Itzhak Maman and then Mhany Management.
There are no active new building construction projects on this tax block.

The majority, or 60 percent of the 309,783 square feet of built space are specialty buildings, with walkup buildings next occupying 29 percent of the space.

The seller

The PincusCo database currently indicates that Harshad S. Patel owned at least two commercial properties with 58 residential units in New York City with 63,823 square feet and a city-determined market value of $11.2 million. (Market value is typically about 50% of actual value.) The portfolio has $9.4 million in debt, borrowed from Hanmi Bank and East End Developers LLC. Within the portfolio, all identified are hotel properties. The bulk, or 67 percent of the built space, is in Bronx, with Brooklyn next at 33 percent of the space.

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