Joel Schwartz pays $5.7M for Bed Stuy dev site, gets $13M construction loan

Joel Schwartz through the entity 582 Gates USA LLC paid $5.7 million to Isaac Dahan through the entity 582 Gates LLC for the development site, formerly a gas station (G4), at 582-584 Gates Avenue in Bedford Stuyvesant, Brooklyn. The expected use is new construction.
On the lot, there is one active new building construction project, 321590319, for a 28-unit, 18,893 square-foot residential (R-2) building at 582 Gates Avenue. The project was submitted by Yisroel Greenfeld with plans filed April 29, 2020 and it has not been permitted yet.
The deal closed on December 5, 2024 and was recorded on December 23, 2024. The property has 1,620 square feet of built space and 17,352 square feet of additional air rights for a total buildable of 18,999 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $3,518 and the price per buildable square foot is $300 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 March 30, 2017, for $1.7 million. The signatory for Isaac Dahan was Isaac Dahan. The signatory for Joel Schwartz was Joel Schwartz. The contract date was October 16, 2024.

Joel Schwartz obtained a $13 million acquisition and construction loan from S3 Capital to finance the purchase and construction.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Joel Schwartz purchased 15 properties in 14 transactions for a total of $51.8 million and sold 12 properties in 12 transactions for a total of $99.5 million over the past 24 months.
The seller Isaac Dahan had not purchased any other properties and sold three properties in two transactions for a total of $4.9 million over the same time period.

The property

The industrial building in Bedford Stuyvesant has 1,620 square feet of built space and 17,352 square feet of additional air rights for a total buildable of 18,999 square feet according to a PincusCo analysis of city data. The parcel has frontage of 63 feet and is 100 feet deep with a total lot size of 6,333 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $664,000.

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 $1,000 in ECB penalties and $1,000 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project, 321590319, for a 28-unit, 18,893 square-foot R-2 building. The project was submitted by Yisroel Greenfeld with plans filed April 29, 2020 and it has not been permitted yet.

The neighborhood

In Bedford Stuyvesant, The bulk, or 35 percent of the 54.8 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 the 9th highest sale turnover among other neighborhoods in the city with $1.1 billion in sales volume in the last two years. For development, Bedford Stuyvesant has 2.5 times the average amount of major developments relative to other neighborhoods and is the 5th 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.

The block

On this tax block, PincusCo has identified the owners of 13 of the 25 commercial properties representing 156,193 square feet of the 210,866 square feet. The largest owner is Alejandro Huezo, followed by L+M Development Partners and then Tal Shlomi.
On the tax block, there were two new building construction projects totaling 23,659 square feet. The largest is a 28-unit, 18,893 square-foot residential (R-2) building submitted by Yisroel Greenfeld with plans filed April 29, 2020 and it has not been permitted yet. The second largest is a two-unit, 4,766 square-foot business (B) building submitted by Koptiev Uri with plans filed June 11, 2019 and it has not been permitted yet.

The majority, or 62 percent of the 210,866 square feet of built space are walkup buildings, with elevator buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that Isaac Dahan owned at least eight commercial properties with 115 residential units in New York City with 173,226 square feet and a city-determined market value of $18.6 million. (Market value is typically about 50% of actual value.) The portfolio has $50.1 million in debt, with top three lenders as Sterling National Bank, Greystone & Co., and Argentic Investment Management respectively. Within the portfolio, the bulk, or 47 percent of the 173,226 square feet of built space are elevator properties, with D6 properties next occupying 32 percent of the space. The bulk, or 93 percent of the built space, is in Brooklyn, with Queens next at 7 percent of the space.

The buyer

The PincusCo database currently indicates that Joel Schwartz owned at least 92 commercial properties with 1,450 residential units in New York City with 1,047,526 square feet and a city-determined market value of $179.6 million. (Market value is typically about 50% of actual value.) The portfolio has $1.3 billion in debt, with top three lenders as BridgeCity Capital, Citibank, and Deutsche Bank respectively. Within the portfolio, the bulk, or 58 percent of the 1,047,526 square feet of built space are elevator properties, with walkup properties next occupying 16 percent of the space. They are all located in Brooklyn.

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