Knoll family pays $12.8M to Deergrow for 10-unit rental in Flatbush

The Knoll family through the entity Mkfit1 LLC paid $12.835 million to Deergrow Developments through the entity 1027-1035 Cortelyou II LLC for the 10-unit mixed-use property at 1035 Cortelyou Road in Flatbush, Brooklyn and property at 1027 Cortelyou Road in Flatbush, Brooklyn.
The deal closed on December 21, 2021 and was recorded on January 7, 2022.

The signatory for Deergrow Developments was Daniel Cohen. The signatory for the Knoll family was Daniel Nathan Kroll.
Prior to this transaction, the buyer Knoll family had not purchased any other properties and sold nine properties in nine transactions for a total of $53.7 million over the past 24 months.
The seller Deergrow Developments had not purchased any other properties and sold one properties in one transactions for a total of $5 million over the same time period.

According to a release: “The building is a 5-story mixed-use building located in Brooklyn, in the new hip area of Cortelyou Road. It is a new construction building consisting of 10 residential units and approx. 10,000 square feet of retail consisting of 5 retail stores. The area has seen a ton of recent gentrification with new restaraunts, bars and stores popping up in the area, with the convenience of it being located just a couple blocks from the subway. The property benefits from a 421-A and ICIP tax abatement. The building was sold to a local Brooklyn-based family that plans to hold it for the long term. The sellers in the deal is Brooklyn Based Deergrow Development. Deergrow purchased the land for $2,685,000 in 2017, and acted as the developer and general contractor for this class A development. Deergrow founded in 2009 led by Max Kozlowitz and Elliot Horowitz own a portfolio of multifamily properties and developments in NYC and across the North East.
Steven Vegh of Westwood Realty Associates represented both the buyers and sellers in this off market transaction.”

In Flatbush, the majority, or 47 percent of the 53.1 million square feet of built space are residential elevator buildings, with 1-4 family buildings next occupying 16 percent of the space. In sales, Flatbush has had very little sales volume relative to neighborhoods in the city with $208.8 million in sales volume in the last two years. For development, Flatbush has near average amount of major developments in the city and is the 21st highest in Brooklyn. It had 1 million square feet of commercial construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.
On the tax block, the majority, or 51 percent of the 386,256 square feet of built space are mixed-use buildings, with 1-4 family buildings next occupying 29 percent of the space.
Within a 400-foot radius of 1035 Cortelyou Road, PincusCo identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, one was in new building development. It was a new building permit issued on November 17, 2021 for a 14,942-square-foot R-2 building with 11 residential units at 1105 Cortelyou Road.
One of those two items was a loan which Nishat Doshi borrowed $8.9 million from New York Community Bank secured by the 0-square-foot development site (V1) on 1105 Cortelyou Road on October 27, 2021.

Direct link to Acris document. link