Jacob Fulop pays $10M to Madison Realty Capital for dev site in Borough Park

UPDATED, 5:15 a.m., January 23, 2025: Jacob Fulop through the entity Fort Hamilton Lofts LLC paid $10 million to Madison Realty Capital through the entity 4202 Holdings LLC for the development building (V1) at 4202-4212 Fort Hamilton Parkway in Borough Park, Brooklyn. The expected use is ground up development.
The deal closed on January 8, 2025 and was recorded on January 14, 2025. The property has zero square feet of built space and 41,696 square feet of additional air rights for a total buildable of 41,696 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $239 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 October 19, 2023, for $12.3 million. The signatory for Madison Realty Capital was Urian Yap. The signatory for Jacob Fulop was Jacob Fulop. The contract date was September 19, 2024.
This property and an adjacent property were sold for $22 million an a bankruptcy sale. At the time, PincusCo reported the buyer of this parcel was Bluestone Group.

Lev Mavashev of Alpha Realty brokered the transaction for both buyer and seller.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Jacob Fulop [transactions & more] purchased 10 properties in 10 transactions for a total of $30.2 million and sold one property in one transaction for a total of $2 million over the past 24 months.
The seller Madison Realty Capital purchased five properties in four transactions for a total of $134.6 million and sold 13 properties in 11 transactions for a total of $225.3 million over the same time period.

The property

The parcel has frontage of 101 feet and is 180 feet deep with a total lot size of 17,159 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.1 million.

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 $2,250 in ECB penalties and $2,250 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 Borough Park, The bulk, or 25 percent of the 23.3 million square feet of commercial built space are specialty buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Borough Park has 2.4 times the average sales volume among other neighborhoods with $629.1 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Borough Park has near average amount of major developments among other neighborhoods and is the 16th highest in Brooklyn. It had 1.1 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.

The block

On this tax block, PincusCo has identified the owners of two of the five commercial properties representing zero square feet of the 7,350 square feet. The two identified owners are Maguire Capital Group and Bluestone Group.
On the tax block, there were two new building construction projects totaling 199,161 square feet. The largest is a 102,263 square-foot business (B) building submitted by Shabsi Pfeiffer with plans filed September 17, 2018 and it has not been permitted yet. The second largest is a 96,898 square-foot 57 building submitted by HCS and filed by Shulim Greenfeld with plans filed February 1, 2023 and permitted October 9, 2024.

The majority, or 100 percent of the 7,350 square feet of built space are mixed-use buildings, with office buildings next occupying 0 percent of the space.

The seller

The PincusCo database currently indicates that Madison Realty Capital owned at least 63 commercial properties with 2,971 residential units in New York City with 2,823,195 square feet and a city-determined market value of $388.8 million. (Market value is typically about 50% of actual value.) The portfolio has $1.5 billion in debt, with top three lenders as Signature Bank, MF1 Capital, and Elliott Investment Management respectively. Within the portfolio, the bulk, or 72 percent of the 2,823,195 square feet of built space are elevator properties, with walkup properties next occupying 12 percent of the space. The bulk, or 41 percent of the built space, is in Queens, with Manhattan next at 33 percent of the space.

The buyer

The PincusCo database currently indicates that Jacob Fulop owned at least 30 commercial properties with 271 residential units in New York City with 248,267 square feet and a city-determined market value of $46.9 million. (Market value is typically about 50% of actual value.) The portfolio has $155.3 million in debt, with top three lenders as Bank of Montreal, Bank of Princeton, and Bank Leumi respectively. Within the portfolio, the bulk, or 42 percent of the 248,267 square feet of built space are walkup properties, with elevator properties next occupying 22 percent of the space. The bulk, or 89 percent of the built space, is in Brooklyn, with Manhattan next at 11 percent of the space.

UPDATED with brokerage information.

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