Hyman Schattner pays $9.6M to Yitzchok Katz for residential walkups in Crown Heights

Hyman Schattner pays $9.6 million to Yitzchok Katz for three residential walkups with a total of 22 units in Crown Heights in three separate transactions.

In the first, Hyman Schattner through the entity 1627 Pacific Management LLC paid $3.2 million to Yitzchok Katz through the entity 1631 Pacific St, LLC for seven-unit residential walkup building (C1) at 1631 Pacific Street in Crown Heights, Brooklyn.
The deal closed on November 3, 2022 and was recorded on November 14, 2022. The property has 4,637 square feet of built space and 508 square feet of additional air rights for a total buildable of 5,144 square feet according to PincusCo analysis of city data. The sale price per built square foot is $690 and the price per buildable square foot is $622 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 May 13, 2016, for $3 million. The signatory for Yitzchok Katz was Yitzchok Katz. The signatory for Hyman Schattner was Hyman Schattner.

In the second, Hyman Schattner through the entity 1627 Pacific Management LLC paid $3.2 million to Yitzchok Katz through the entity 1629 Pacific St, LLC for eight-unit residential walkup building (C1) at 1629 Pacific Street in Crown Heights, Brooklyn. The deal closed on November 3, 2022 and was recorded on November 14, 2022.The property has 5,396 square feet of built space and 675 square feet of additional air rights for a total buildable of 6,075 square feet according to PincusCo analysis of city data. The sale price per built square foot is $593 and the price per buildable square foot is $526 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 May 13, 2016, for $3 million. The signatory for Yitzchok Katz was Yitzchok Katz. The signatory for Hyman Schattner was Hyman Schattner.

In the third, Hyman Schattner through the entity 1627 Pacific Management LLC paid $3.2 million to Yitzchok Katz through the entity 1627 Pacific St, LLC for seven-unit residential walkup building (C1) at 1627 Pacific Street in Crown Heights, Brooklyn.
The deal closed on November 3, 2022 and was recorded on November 14, 2022.The property has 4,637 square feet of built space and 508 square feet of additional air rights for a total buildable of 5,144 square feet according to PincusCo analysis of city data. The sale price per built square foot is $690 and the price per buildable square foot is $622 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 May 13, 2016, for $3 million. The signatory for Yitzchok Katz was Yitzchok Katz. The signatory for Hyman Schattner was Hyman Schattner.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Hyman Schattner had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Yitzchok Katz purchased 14 properties in eight transactions for a total of $109.5 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Yitzchok Katz, head officer and Yitchok Katz, shareholder. The business entity is Pacific Usa, Llc. The 4,637-square-foot property generated revenue of $102,478 or $22 per square foot, according to the most recent income and expense figures.

The property

The 1627 Pacific Street parcel has frontage of 21 feet and is 100 feet deep with a total lot size of 2,117 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property has a 421A exemption that started in 2019.0 and expires in 2034.0. The city-designated market value for the property in 2022 is $980,000.

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 received $100 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 30, 2017. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of four of the 19 commercial properties representing 18,420 square feet of the 84,895 square feet. The two identified owners are Yitzchok Katz and Chaim Wurzberger.
On the tax block, there were two new building construction projects totaling 7,014 square feet. The largest is a eight-unit, 5,414-square-foot R-2 building developed by Rotem Cohen with plans filed January 30, 2020 and it has not been permitted yet.The second largest is a 1,600-square-foot M building developed by Hassan Aboulessan with plans filed September 12, 2014 and it has not been permitted yet.

The majority, or 70 percent of the 84,895 square feet of built space are industrial buildings, with walkup buildings next occupying 22 percent of the space.

The seller

The PincusCo database currently indicates that Yitzchok Katz owned at least 21 commercial properties in New York City with 187,579 square feet and a city-determined market value of $33 million. (Market value is typically about 50% of actual value.) The portfolio has $254.1 million in debt, with top three lenders as G4 Capital Partners, SCALE Lending, and Slate Property Group respectively. Within the portfolio, the bulk, or 42 percent of the 187,579 square feet of built space are elevator properties, with walkup properties next occupying 26 percent of the space. The bulk, or 83 percent of the built space, is in Brooklyn, with Queens next at 17 percent of the space.

The buyer

The PincusCo database currently indicates that Hyman Schattner owned at least 58 commercial properties in New York City with 506,042 square feet and a city-determined market value of $55.7 million. (Market value is typically about 50% of actual value.) The portfolio has $5 million in debt, borrowed from Ridgewood Savings Bank. Within the portfolio, the bulk, or 84 percent of the 506,042 square feet of built space are walkup properties, with mixed-use properties next occupying 10 percent of the space. The bulk, or 81 percent of the built space, is in Brooklyn, with Queens next at 19 percent of the space.

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