Kingsdel Real Estate pays $11M for development parcels in Brooklyn

Nigel Boyden’s Kingsdel Real Estate paid $11 million for five properties in Brooklyn in two transactions representing two projects, one in East Flatbush and the other in Prospect Lefferts Gardens. Both projects are described on the Kingsdel Real Estate website.

At 625 New York Avenue, there is one active new building construction project for a 45-unit, 43,380 square-foot residential (R-2) building. The project was developed by Nigel Boyden with plans filed September 16, 2022 and it has not been permitted yet.

At 447 Fenimore Avenue, there is one active new building construction project for a 11-unit, 13,496 square-foot residential (R-2) building. The project was developed by Nigel Boyden with plans filed September 16, 2022 and it has not been permitted yet.

In the first transaction, Kingsdel Real Estate through the entity 625 New York 2022 LLC paid $8.4 million to Joseph Merola Jr. through the entity Kings County Nurseries Inc. for the industrial building (E1) at 629 New York Avenue in East Flatbush, Brooklyn, retail building (K1) at 625 New York Avenue in East Flatbush, Brooklyn, and specialty building (Z9) at Fenimore Street in East Flatbush, Brooklyn.
The deal closed on February 22, 2023 and was recorded on February 28, 2023. The four properties have 2,800 square feet of built space and 34,657 square feet of additional air rights for a total buildable of 37,422 square feet according to PincusCo analysis of city data. The sale price per built square foot is $3,000 and the price per buildable square foot is $224 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 Merola Jr. was Joseph Merola Jr.. The signatory for Kingsdel Real Estate was Nigel Boyden. The contract date was April 28, 2022.

In the second, Kingsdel Real Estate through the entity 447 Fenimore 2022 LLC paid $2.6 million to Joseph Merola Jr. through the entity 447 Fenimore Street Realty LLC for specialty building (Z9) at 447 Fenimore Street in Prospect Lefferts Gardens, Brooklyn. The deal closed on February 22, 2023 and was recorded on February 28, 2023.The property has zero square feet of built space and 10,935 square feet of additional air rights for a total buildable of 10,935 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $237 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 Merola Jr. was Joseph Merola Jr.. The signatory for Kingsdel Real Estate was Nigel Boyden. The contract date was April 28, 2022.

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 629 New York Avenue.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Kingsdel Real Estate had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Joseph Merola Jr. had not purchased any other properties and had not sold any properties over the same time period. Out of the four properties, two with a total of 2,800 square feet of built space generated revenue of $74,204 per year.

The neighborhood

In East Flatbush, the bulk, or 32 percent of the 42.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 23 percent of the space. In sales, East Flatbush has had very little sales volume relative to other neighborhoods with $198 million in sales volume in the last two years. For development, East Flatbush has 2.4 times the average amount of major developments relative to other neighborhoods and is the 8th 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 6 percent of the neighborhood’s built space.

The block

On the tax block, there was one new building construction project filed totaling 43,380 square feet. It is a 45-unit, 43,380-square-foot R-2 building developed by Nigel Boyden with plans filed September 16, 2022 and it has not been permitted yet.

The majority, or 51 percent of the 23,840 square feet of built space are mixed-use buildings, with specialty buildings next occupying 38 percent of the space.

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