March foreclosure auction set for Pink Stone DoBro rental with $58M judgment

The referee managing the foreclosure sale of Pink Stone Capital Group’s Downtown Brooklyn rental 180 Nassau Street, scheduled the auction for March 13, 2025, to sell the 103-unit rental building that has a judgment of $58 million. The auction was disclosed in a notice of sale published yesterday in State Supreme Court in Brooklyn. The debt is controlled by lender Prime Finance.

Case 532830/2022 LINK

Pink Stone Capital Group is led by Richard Ohebshalom. The firm lost or sold two high-profile Financial District development properties in 2021, 111 Washington Street and separately 105 Washington Street.

Prime Finance through the entity Pfss 180 Nassau LLC bought a note with an original principal of $52 million from Investors Bank secured by Pink Stone Capital Group’s 103-unit residential elevator building (D3) at 172-184 Nassau Street, also known as 180 Nassau Street, in Downtown Brooklyn, Brooklyn.
The deal closed on September 29, 2022 and was recorded on November 7, 2022. The prior lender was Investors Bank which held debt that had an original loan amount of $52 million.The property has 108,501 square feet of built space according to PincusCo analysis of city data.
Pink Stone bought the property on February 14, 2012, for $11.3 million, and then constructed the building. The $52 million loan is from December 2014.

The property

The elevator building with 103 residential units in Downtown Brooklyn has 108,501 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 87 feet deep with a total lot size of 13,295 square feet. The zoning is C6-2 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential. The property has a 421A exemption that started in 2013 and expires in 2028. The city-designated market value for the property in 2022 is $25.4 million.

Prior sales and revenue

This property was sold with 3 other properties for $11.3 million on February 14, 2012.

The 108,501-square-foot property generated revenue of $4.9 million or $45 per square foot, according to the most recent income and expense figures.

Development

Richard Ohebshalom of Mica Gabe Brooklyn, LLC developed the new building, that had plans for a 103-unit, 79,000 square-foot residential (R-2) building at 180 Nassau Street. The plan was initially filed on March 18, 2005 and was permitted on June 25, 2008. It called for the construction of a 101-foot tall, 10-story building and was filed with the New York City Department of Buildings under job number 301914739.

For the tax lot building, it received its initial certificate of occupancy on June 13, 2014.

Violations and lawsuits

According to city public data, the property has received two DOB violations, $6,250 in ECB penalties, and $6,300 in OATH penalties in the last year.

The neighborhood

In Downtown Brooklyn, The bulk, or 40 percent of the 22.4 million square feet of commercial built space are office buildings, with elevator buildings next occupying 24 percent of the space. In sales, Downtown Brooklyn has near average sales volume among other neighborhoods with $399.2 million in sales volume in the last two years and is the 16th highest in Brooklyn. For development, Downtown Brooklyn has near average amount of major developments among other neighborhoods and is the 3rd highest in Brooklyn. It had 3 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 three of the four commercial properties representing 131,181 square feet of the 131,181 square feet. The largest owner is Chris Paravalos, followed by Isadore Heimann and then Pink Stone Capital Group. There are no active new building construction projects on this tax block.

The owner

The PincusCo database currently indicates that Pink Stone Capital Group owned at least one commercial property with 103 residential units in New York City with 108,501 square feet and a city-determined market value of $29.9 million. (Market value is typically about 50% of actual value.) The portfolio has $21.6 million in debt, borrowed from Madison Realty Capital and Prime Finance. The portfolio consists of at least a single elevator property. It is located in Brooklyn.

The owners according to the Department of Housing Preservation and Development includes Richard Ohebshalom, head officer and Erseida Mhili, officer. The business entities are R.E.M. Residential and Brooklyn Warehouse, Llc.

Direct link to the property’s ACRIS page and link to DOB NOW portal.