Lipa L. Zicherman entity pays $22.6M to Starrett Companies for 400K sf dev site in Coney Island

UPDATED: Lipa L. Zicherman and Gary Segal are affiliated with the entity Oceangate Family Holdings LLC which paid $22.6 million to Starrett Companies through the entity Pemmil Land Holdings LLC for the development site along Bay View Avenue in Coney Island, Brooklyn. There are no active development plans filed for the parcel.  The approximate address using Google Streetview is 2713 West 33rd Street.
The deal closed on April 25, 2023 and was recorded on May 11, 2023. The property has zero square feet of built space and 400,000 thousand square feet of development rights for an affordable housing project.
The signatory for Starrett Companies was David Goldban. The signatory for Lipa Zicherman and Gary Segal was Lipa L. Zicherman. This is a large development site.
PincusCo reported on a court case Starrett filed in 2021 related to attempts to sell the site.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Lipa Zicherman had purchased any other properties and sold one property in one transactions for a total of $3.8 million over the past 24 months.
The seller Starrett Companies had not purchased any other properties and sold one properties in one transactions for a total of $40 million over the same time period.

The property

The parcel has frontage of zero feet and is zero feet deep with a total lot size of 140,784 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.2 million. The most recent loan totaled $5.8 million and was provided by Signature Bank on December 22, 2021.

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 not received any significant violations 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 Coney Island, The majority, or 68 percent of the 14.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 10 percent of the space. In sales, Coney Island has had very little sales volume relative to other neighborhoods with $108.9 million in sales volume in the last two years. For development, Coney Island has 1.9 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Brooklyn. It had 1.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the three commercial properties representing zero square feet of the 209,050 square feet. The identified owner is Starrett Corporation.
There are no active new building construction projects on this tax block.

The majority, or 67 percent of the 209,050 square feet of built space are elevator buildings, with walkup buildings next occupying 33 percent of the space.

The seller

The PincusCo database currently indicates that Starrett Companies owned at least two commercial properties with 8,018 residential units in New York City with 4,786,701 square feet and a city-determined market value of $1.1 billion. (Market value is typically about 50% of actual value.) The portfolio has $35.9 million in debt, borrowed from Capital One and Signature Bank. Within the portfolio, the bulk, or 100 percent of the 4,786,701 square feet of built space are D4 properties, with Q1 properties next occupying 0 percent of the space. They are all located in Manhattan.

UPDATED: For privacy a name was removed.

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