Joseph Mendlowits pays $4M for dev site in Cypress Hills, has 60-unit plans filed

Joseph Mendlowits through the entity 2711 Fulton LLC paid $4 million to Aron Schwartz through the entity 2715 Fulton LLC for industrial building (G9) at 2709 Fulton Street in Cypress Hills, Brooklyn, industrial building (F5) at 2715 Fulton Street in Cypress Hills, Brooklyn, and two-unit 1-4 family building (B2) at 2701 Fulton Street in Cypress Hills, Brooklyn.

On these lots, there is one active new building construction project for a 60-unit, 44,125 square-foot R-2 building. The project was developed by Aron Schwartz with plans filed December 22, 2021 and it has not been permitted yet.
The deal closed on December 30, 2022 and was recorded on January 4, 2023. The three properties have 4,173 square feet of built space and 34,260 square feet of additional air rights for a total buildable of 38,400 square feet according to PincusCo analysis of city data. The sale price per built square foot is $959 and the price per buildable square foot is $104 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 signatory for Aron Schwartz was Aron Schwartz. The signatory for Joseph Mendlowits was Joseph Mendlowits.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 2709 Fulton Street.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Joseph Mendlowits had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Aron Schwartz had not purchased any other properties and had not sold any properties over the same time period. Out of the three properties, two with a total of 4,173 square feet of built space generated revenue of $46,725 per year.

The property

The 2709 Fulton Street parcel has frontage of 75 feet and is 75 feet deep with a total lot size of 5,625 square feet. The zoning is C4-4L which allows for up to nan times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $181,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $2,500 in ECB penalties and $2,750 in OATH penalties in the last year.

The neighborhood

In Cypress Hills, the bulk, or 24 percent of the 8.5 million square feet of commercial built space are mixed-use buildings, with specialty buildings next occupying 22 percent of the space. In sales, Cypress Hills has the 36th highest sale turnover among other neighborhoods in Brooklyn with $89.2 million in sales volume in the last two years. For development, Cypress Hills has near average amount of major developments among other neighborhoods and is the 17th highest in Brooklyn. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On the tax block, there were two new building construction projects totaling 48,457 square feet. The largest is a 60-unit, 44,125-square-foot R-2 building developed by Aron Schwartz with plans filed December 22, 2021 and permitted June 1, 2022. The second largest is a two-unit, 4,332-square-foot R-3 building developed by Juan Calderon with plans filed July 22, 2016 and it has not been permitted yet.

The majority, or 52 percent of the 21,642 square feet of built space are mixed-use buildings, with industrial buildings next occupying 48 percent of the space.

Direct link to Acris document. link