Kingsdel buys Crown Heights dev site where EMP planned building, gets $11.3M construction loan

Kingsdel Real Estate through the entity Prospect Place Brooklyn LLC paid at least $4 million for a site previously owned by Joseph Segreti through the entity Column A Realty LLC, which is the development site with addresses 1415 Bedford Avenue and 699 through 705 Prospect Place in Crown Heights, Brooklyn.
There is a new building project for a 17-unit, 17,794 square-foot residential (R-2) building submitted by Elie Pariente’s EMP Capital Group with plans filed May 17, 2023 and it has not been permitted yet.
Simultaneously with the purchase, Kingsdel Real Estate obtained an $11.3 million construction loan from S3 Capital.

The sale closed on April 4, 2024 and was recorded on April 18, 2024. The five properties have zero square feet of built space and 17,922 square feet of additional air rights for a total buildable of 17,922 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $225 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 Joseph Segreti was Joseph Segreti. The signatory for Kingsdel Real Estate was Nigel Boyden. The contract date was September 8, 2022.
It is not clear if this is a flip of the 2022 contract by EMP to Kingsdel, and those two firms did not immediately respond to a request for comment.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Kingsdel Real Estate purchased five properties in two transactions for a total of $11 million and has no record it sold any properties over the past 24 months.
The seller Joseph Segreti had not purchased any other properties and had not sold any properties over the same time period.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $990 in OATH penalties in the last year.

The neighborhood

In Crown Heights, The bulk, or 39 percent of the 46.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 2 times the average sales volume among other neighborhoods with $569.9 million in sales volume in the last two years and is the 11th highest in Brooklyn. For development, Crown Heights has 2.1 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 2.4 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 the tax block of 703 Prospect Place, PincusCo has identified the owners of 10 of the 14 commercial properties representing 13,888 square feet of the 22,854 square feet. The largest owner is Wilma E. Europe, followed by Joseph Segreti and then Isabelle George.

The seller

The PincusCo database currently indicates that Joseph Segreti owned at least seven commercial properties in New York City with 0.0 square feet and a city-determined market value of $1.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 0 percent of the 0.0 square feet of built space are development properties, with specialty properties next occupying 0 percent of the space.

The buyer

The PincusCo database currently indicates that Kingsdel Real Estate owned at least five commercial properties in New York City with 2,800 square feet and a city-determined market value of $785,000. (Market value is typically about 50% of actual value.) The portfolio has $41 million in debt, borrowed from Urban Standard Capital. Within the portfolio, the bulk, or 71 percent of the 2,800 square feet of built space are industrial properties, with retail properties next occupying 29 percent of the space. They are all located in Brooklyn.

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