Maheshchand Ratanji pays $22M for hotel in Bedford Stuyvesant

Maheshchand Ratanji through the entity American Dream II Hotel LLC paid $22 million to Rajendra R. Patel and Mamraben R. Patel through the entity Brooklyn Broadway Hotel LLC for the hotel building (H3) at 1090 Myrtle Avenue in Bedford Stuyvesant, Brooklyn. The expected use is cash flowing.
The deal closed on October 9, 2024 and was recorded on October 17, 2024. The property has 41,212 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $533 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 September 21, 2012, for $1.7 million. The signatory for Rajendra R. Patel and Mamraben R. Patel was Rajendra R. Patel. The signatory for Maheshchand Ratanji was Maheshchand M. Ratanji. The contract date was July 18, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Maheshchand Ratanji purchased two other properties for $15 million and has no record it sold any properties over the past 24 months.
The sellers Rajendra R. Patel and Mamraben R. Patel had not purchased any other properties and had not sold any properties over the same time period. The 41,212-square-foot property generated revenue of $3.8 million or $93 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Bedford Stuyvesant has 41,212 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. The zoning is C4-4L which allows for up to nan times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $8.9 million.

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

For the tax lot building, it received its initial certificate of occupancy on January 11, 2021. 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 Bedford Stuyvesant, The bulk, or 35 percent of the 54.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has the 8th highest sale turnover among other neighborhoods in the city with $1 billion in sales volume in the last two years. For development, Bedford Stuyvesant has 2.5 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 13 commercial properties representing 317,878 square feet of the 406,778 square feet. The two identified owners are Spencer An and Yitzchok Schwartz.
On the tax block, there was one new building construction project filed totaling 195,548 square feet. It is a 233-unit, 195,548 square-foot residential (R-2) building submitted by Shorewood Real Estate Group and filed by Hugo Corvalan with plans filed June 18, 2020 and permitted November 17, 2021.

The majority, or 75 percent of the 406,778 square feet of built space are elevator buildings, with hotel buildings next occupying 10 percent of the space.

The buyer

The PincusCo database currently indicates that Maheshchand Ratanji owned at least 27 commercial properties in New York City with more than 600,000 square feet and about 90 percent are hotel properties.

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