GD Capital Group pays $2.1M to former lender Sharestates for mixed-use in Bedford Stuyvesant
GD Capital Group through the entity 13 Marcus Garvey Blvd Holdings LLC paid $2.1 million to Sharestates through the entity Chrondite Reo (5) Inc. for the five-unit mixed-use building (S5) at 13 Marcus Garvey Blvd in Bedford Stuyvesant, Brooklyn.
The deal closed on October 24, 2023 and was recorded on November 21, 2023. The property has 3,750 square feet of built space and 3,748 square feet of additional air rights for a total buildable of 7,496 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $553 and the price per buildable square foot is $276 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 Sharestates was Allen Shayanfekr. The signatory for GD Capital Group was Mark Guindi. The contract date was August 10, 2023. The prior owner was Michael Israel who lost the property to lender Sharestates.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer GD Capital Group purchased three properties in three transactions for a total of $7.7 million and has no record it sold any properties over the past 24 months.
The seller Sharestates had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Michael Israel, head officer. The business entity is 13 Marcus Garvey Blvd Llc.
The property
The mixed-use building with 5 residential units in Bedford Stuyvesant has 3,750 square feet of built space and 3,748 square feet of additional air rights for a total buildable of 7,496 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 75 feet deep with a total lot size of 1,874 square feet. The zoning is C4-4L which allows for up to nan times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $388,000.
Violations and lawsuits
The property was involved in zero lawsuits and one bankruptcy over the past two years. The bankruptcy was filed on July 21, 2022, by Michael Israel citing assets of $2.1 million. In addition, according to city public data, the property has received five DOB violations and $1,525 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 Bedford Stuyvesant, The bulk, or 35 percent of the 54.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has 3.3 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bedford Stuyvesant has 2.8 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There were four pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of one of the seven commercial properties representing 35,300 square feet of the 95,742 square feet. The identified owner is Albert Srour.
There are no active new building construction projects on this tax block.
The majority, or 41 percent of the 95,742 square feet of built space are office buildings, with retail buildings next occupying 37 percent of the space.
The buyer
The PincusCo database currently indicates that GD Capital Group owned at least four commercial properties with 17 residential units in New York City with 17,768 square feet and a city-determined market value of $4.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 69 percent of the 17,768 square feet of built space are mixed-use properties, with walkup properties next occupying 31 percent of the space. They are all located in Brooklyn.
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