Loketch Group pays $8.3M for 32-unit dev site in Crown Heights

Loketch Group through the entity Prospect Grand Holdings LLC paid $8.3 million to Loretta Marotto through the entity Grand Ckm, LLC for the retail building (K1) at 630 Grand Avenue and an adjacent parcel in Crown Heights, Brooklyn.
On these lots, there is one active new building construction project for a 32-unit, 34,654 square-foot R-2 building. The project was submitted by the Loketch Group and filed by Moishe Loketch with plans filed May 1, 2023 and it has not been permitted yet.

The deal closed on September 1, 2023 and was recorded on September 8, 2023. The two properties have 5,690 square feet of built space and 27,929 square feet of additional air rights for a total buildable of 33,605 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,458 and the price per buildable square foot is $246 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 Loretta Marotto was Loretta Marotto. The contract date was September 9, 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 630 Grand Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Loketch Group purchased one property in one transaction for a total of $2.5 million and has no record it sold any properties over the past 24 months.
The seller Loretta Marotto had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail building in Crown Heights has 5,690 square feet of built space and 27,929 square feet of additional air rights for a total buildable of 33,605 square feet according to a PincusCo analysis of city data. The parcel has frontage of 78 feet and is 141 feet deep with a total lot size of 9,957 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $767,000.

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 $300 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 32-unit, 34,654 square-foot R-2 building. The project was submitted by Loketch Group and filed by Moishe Loketch with plans filed May 1, 2023 and it has not been permitted yet.

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 1.4 times the average sales volume among other neighborhoods with $518.2 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Crown Heights has 3.2 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 3.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On the tax block of 630 Grand Avenue, PincusCo has identified the owners of two of the 10 commercial properties representing 9,060 square feet of the 38,560 square feet. The two identified owners are Loketch Group and Brooklyn Neighborhood Improvement Association.
On the tax block, there were two new building construction projects totaling 39,867 square feet. The largest is a 32-unit, 34,654 square-foot residential (R-2) building submitted by Loketch Group and filed by Moishe Loketch with plans filed May 1, 2023 and it has not been permitted yet. The second largest is a five-unit, 5,213 square-foot residential (R-2) building submitted by Matt Schneider with plans filed December 11, 2015 and it has not been permitted yet.

The majority, or 38 percent of the 38,560 square feet of built space are retail buildings, with walkup buildings next occupying 31 percent of the space.

The buyer

The PincusCo database currently indicates that Loketch Group owned at least 16 commercial properties with 187 residential units in New York City with 295,113 square feet and a city-determined market value of $51.9 million. (Market value is typically about 50% of actual value.) The portfolio has $133.3 million in debt, with top three lenders as Societe Generale, Maxim Capital Group, and BridgeCity Capital respectively. Within the portfolio, the bulk, or 70 percent of the 295,113 square feet of built space are elevator properties, with office properties next occupying 18 percent of the space. They are all located in Brooklyn.

Direct link to Acris document. link