Ilya Parnas pays $8.9M for retail in Flatlands

Ilya Parnas through the entity 2102 Parnasa LLC paid $8.9 million to Joel Jacob and Morris Jacobs through the entity 2102 Ralph Realty LLC for the retail building (K1) at 2102 Ralph Avenue in Flatlands, Brooklyn. The expected use is cash flowing.
The deal closed on November 18, 2024 and was recorded on November 25, 2024. The property has 11,926 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $744 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 26, 2022, for $5.7 million. The signatory for Joel Jacob and Morris Jacobs was Joel Jacob. The signatory for Ilya Parnas was Ilya Parnas. The contract date was July 3, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Ilya Parnas had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Joel Jacob had not purchased any other properties and sold two properties in two transactions for a total of $5.3 million over the same time period. The 11,926-square-foot property generated revenue of $471,500 or $40 per square foot, according to the most recent income and expense figures.

The property

The retail building in Flatlands has 11,926 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 227 feet and is 100 feet deep with a total lot size of 22,730 square feet. The zoning is R3-2 which allows for up to 0.5 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3 million. The most recent loan totaled $5.5 million and was provided by Skybrook Capital on May 26, 2022.

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 not received any significant violations 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 Flatlands, The bulk, or 35 percent of the 6.3 million square feet of commercial built space are elevator buildings, with mixed-use buildings next occupying 19 percent of the space. In sales, Flatlands has had very little sales volume relative to other neighborhoods with $98.2 million in sales volume in the last two years. For development, Flatlands has had very little major development activity relative to other neighborhoods.It had 214,839 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 one of the two commercial properties representing 11,926 square feet of the 26,176 square feet. The identified owner is Morris Jacobs.
There are no active new building construction projects on this tax block.

All properties are retail.

The seller

The PincusCo database currently indicates that Joel Jacob owned at least two commercial properties with 54 residential units in New York City with 55,374 square feet and a city-determined market value of $9.2 million. (Market value is typically about 50% of actual value.) The portfolio has $40.6 million in debt, with top three lenders as Bravo Capital, Spruce Capital, and Starwood Mortgage Capital respectively. Within the portfolio, the bulk, or 85 percent of the 55,374 square feet of built space are elevator properties, with retail properties next occupying 15 percent of the space. They are all located in Brooklyn.
The PincusCo database currently indicates that Morris Jacobs owned at least one commercial property in New York City with 11,926 square feet and a city-determined market value of $3 million. (Market value is typically about 50% of actual value.) The portfolio has $5.5 million in debt, borrowed from Skybrook Capital. The portfolio consists of at least a single retail property. It is located in Brooklyn.

Direct link to Acris document. link