Mahbub Rahman pays $4.8M to Alchemy Ventures for residential walkup in Flatbush

Mahbub U. Rahman through the entity Mur 1380, LLC paid $4.8 million to Alchemy Ventures through the entity 649 Argyle Road, LLC for 18-unit residential walkup building at 649 Argyle Road in Flatbush, Brooklyn.
The deal closed on April 29, 2022 and was recorded on May 12, 2022. The property has 18,150 square feet of built space and 1,056 square feet of additional air rights for a total buildable of 19,200 square feet according to PincusCo analysis of city data. The sale price per built square foot is $261 and the price per buildable square foot is $247 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 seller bought the property on August 30, 2017, for $4 million. The signatory for Alchemy Ventures was Sam Kooris. The signatory for Mahbub U. Rahman was Mahbub U. Rahman.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Mahbub U. Rahman had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Alchemy Ventures purchased 21 properties in 20 transactions for a total of $94.6 million and sold one properties in one transactions for a total of $2.8 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Raquel Hernandez, head officer and Ibrahim Mustafa, officer.

The property

The 649 Argyle Road parcel has frontage of 129 feet and is 43 feet deep with a total lot size of 4,800 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received one housing violation and $250 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Flatbush, the bulk, or 47 percent of the 51.8 million square feet of commercial built space are residential elevator buildings, with 1-4 family buildings next occupying 17 percent of the space. In sales, Flatbush has had very little sales volume relative to other neighborhoods with $208.8 million in sales volume in the last two years. For development, Flatbush has near average amount of major developments among other neighborhoods and is the 20th highest in Brooklyn. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There were four pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the 16 commercial properties representing 131,080 square feet of the 314,344 square feet. The two identified owners are Angelo Parlanti and A&E Real Estate Holdings. There are no active new building construction projects on this tax block.

The majority, or 51 percent of the 362,209 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 25 percent of the space.

The seller

The PincusCo database currently indicates that Alchemy Ventures owned at least 29 commercial properties with 275,766 square feet and a city-determined market value of $83.2 million. (Market value is typically about 50% of actual value.) The portfolio has $62.9 million in debt, with top three lenders as Fortress Investment Group, Citibank, and Ready Capital respectively. Within the portfolio, the bulk, or 79 percent of the 275,766 square feet of built space are residential walkup properties, with mixed-use properties next occupying 21 percent of the space. The bulk, or 55 percent of the built space, is in Brooklyn, with Manhattan next at 43 percent of the space.

Surrounding

Within a 400-foot radius of 649 Argyle Road, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, three were loans above $5 million totaling $38.6 million. The most recent of the three was Pinnacle Group which borrowed $7.4 million from New York Community Bank secured by the 27,200-square-foot, 32-unit rental (C1) on 619 Rugby Road and two other properties on February 9, 2022.

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