Maimonides Medical Center pays $14.5M for school building in Borough Park

Maimonides Medical Center paid $14.5 million to Yeshivath Toldos Yakov of Papa for the school building (W2) at 4706 10th Avenue in Borough Park, Brooklyn.
The deal closed on September 7, 2023 and was recorded on September 14, 2023. The property has 23,133 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $626 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 Yeshivath Toldos Yakov of Papa was Solomon Weber. The contract date was July 30, 2019.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Maimonides Medical Center had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Yeshivath Toldos Yakov of Papa had not purchased any other properties and had not sold any properties over the same time period.

The property

The specialty building in Borough Park has 23,133 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 60 feet and is 100 feet deep with a total lot size of 5,999 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 $2.1 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

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 Borough Park, The bulk, or 25 percent of the 23.2 million square feet of commercial built space are specialty buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Borough Park has 1.4 times the average sales volume among other neighborhoods with $499.9 million in sales volume in the last two years and is the 15th highest in Brooklyn. For development, Borough Park has had very little major development activity relative to other neighborhoods.It had 806,721 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 28 commercial properties representing 122,060 square feet of the 209,092 square feet. The two identified owners are Maimonides Medical Center and Iris Holdings Group.
There are no active new building construction projects on this tax block.

The majority, or 58 percent of the 209,092 square feet of built space are walkup buildings, with office buildings next occupying 21 percent of the space.

The buyer

The PincusCo database currently indicates that Maimonides Medical Center owned at least 11 commercial properties with 230 residential units in New York City with 1,263,027 square feet and a city-determined market value of $284.5 million. (Market value is typically about 50% of actual value.) The portfolio has $184.4 million in debt, borrowed from NYS Dormitory Authority and Bank of America. Within the portfolio, the bulk, or 65 percent of the 1,263,027 square feet of built space are specialty properties, with industrial properties next occupying 18 percent of the space. They are all located in Brooklyn.

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