Isamar Margareten pays $5M to Black Horse Capital for 8-unit walkup in Bed Stuy

558 Lafayette Avenue (Credit - Google)
Isamar Margareten through the entity 558 Lafayette Ny LLC paid $5 million to Black Horse Capital through the entity 558 Lafayette Bhc LLC for eight-unit residential walkup building (C1) at 558 Lafayette Avenue in Bed Stuy, Brooklyn.
The deal closed on June 16, 2022 and was recorded on July 1, 2022. The property has 9,055 square feet of built space and 950 square feet of additional air rights for a total buildable of 10,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $557 and the price per buildable square foot is $505 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 February 11, 2016, for $4.8 million. The signatory for Black Horse Capital was Stefanie Rosenzweig. The signatory for Isamar Margareten was Isamar Margareten. Stefanie Rosenzweig is a principal of Black Horse Capital.
Prior sales and revenue
Prior to this transaction, Pincusco has records that the buyer Isamar Margareten purchased one property in one transaction for a total of $5.5 million and has no record it sold any properties over the past 24 months.
The seller Black Horse Capital had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Christopher Terlik, head officer and Stefanie Rosenzweig, officer. The business entity is 558 Lafayette Bhc Llc.
The property
The 558 Lafayette Avenue parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The property has a 421A exemption that started in 2005.0 and expires in 2030.0. The city-designated market value for the property in 2022 is $951,700.
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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 five housing violations in the last year.
Development
For the tax lot building, it received its initial certificate of occupancy on February 14, 2014. 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 Bed Stuy, the bulk, or 32 percent of the 57.5 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 28 percent of the space. In sales, Bed Stuy has 1.7 times the average sales volume among other neighborhoods with $560.8 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, Bed Stuy is the 9th most active neighborhood among other neighborhoods. It had 5 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space. There were six pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of 14 of the 33 commercial properties representing 136,301 square feet of the 181,751 square feet. The largest owner is Oak Tree Residential, followed by Joseph Choi and then Howrd Fepler. There are two active new building construction projects totaling 17,581 square feet. The largest is a 15-unit, 11,008-square-foot R-2 building developed by Edgardo Kramer with plans filed November 23, 2018 and permitted August 4, 2020. The second largest is an eight-unit, 6,573-square-foot R-2 building developed by Tomer Erlich with plans filed July 19, 2016 and it has not been permitted yet.
The majority, or 72 percent of the 180,527 square feet of built space are residential walkup buildings, with mixed-use buildings next occupying 21 percent of the space.
The seller
The PincusCo database currently indicates that Black Horse Capital owned at least nine commercial properties with 49,793 square feet and a city-determined market value of $12.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 59 percent of the 49,793 square feet of built space are walkup properties, with mixed-use properties next occupying 41 percent of the space. They are all located in Brooklyn.
The buyer
The PincusCo database currently indicates that Isamar Margareten owned at least one commercial property with 9,300 square feet and a city-determined market value of $938,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Brooklyn.
Surrounding
Within a 400-foot radius of 558 Lafayette Avenue, PincusCo identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on July 29, 2021 for the $300,000 renovation of 2,000-square-foot R-2 building with two residential units at 562 Lafayette Avenue.
One of those two items was a loan which Aron Karpen borrowed $7.5 million from Greystone & Co. secured by the 21,990-square-foot, 32-unit rental (C1) on 70 Kosciuszko Street on February 22, 2022.
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