JSAF Capital pays $4M for mixed-use in Gowanus, now controls 4-parcel corner

JSAF Capital through the entity 524 4th Ave Realty, LLC paid $4 million to Mitchell Gordon through the entity 524 4th Ave, Inc. for the four-unit mixed-use building (S9) at 524 4th Avenue in Gowanus, Brooklyn. This is the fourth property JSAF Capital has purchased on this block, now controlling the corner.
The deal closed on February 21, 2024 and was recorded on March 11, 2024. The property has 6,720 square feet of built space and 7,891 square feet of additional air rights for a total buildable of 14,616 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $587 and the price per buildable square foot is $270 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 Mitchell Gordon was Mitchell Gordon. The signatory for JSAF Capital was Joseph Safdie. The contract date was November 13, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer JSAF Capital purchased three properties in two transactions for a total of $11.8 million and has no record it sold any properties over the past 24 months.
The seller Mitchell Gordon 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 Marshall Sollender, head officer and Mitch Gordon, officer. The business entity is 524 4th Ave Inc.

The property

The mixed-use building with 4 residential units in Gowanus has 6,720 square feet of built space and 7,891 square feet of additional air rights for a total buildable of 14,616 square feet according to a PincusCo analysis of city data. The parcel has frontage of 28 feet and is 86 feet deep with a total lot size of 2,428 square feet. The zoning is C4-4D which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.9 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 two DOB violations and $25 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 Gowanus, The bulk, or 46 percent of the 9.2 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 19 percent of the space. In sales, Gowanus has 2.1 times the average sales volume among other neighborhoods with $605.4 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Gowanus has had very little major development activity relative to other neighborhoods.It had 766,589 square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 15 commercial properties representing 28,616 square feet of the 102,984 square feet. The largest owner is Suren Gabriel, followed by Nicholas Valentino and then JSAF Capital.
There are no active new building construction projects on this tax block.

The majority, or 46 percent of the 102,984 square feet of built space are walkup buildings, with hotel buildings next occupying 24 percent of the space.

The buyer

The PincusCo database currently indicates that Jsaf Capital owned at least four commercial properties with 47 residential units in New York City with 38,391 square feet and a city-determined market value of $8.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 57 percent of the 38,391 square feet of built space are walkup properties, with elevator properties next occupying 43 percent of the space. They are all located in Brooklyn.

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