Mehdi Dayan pays $10.3M to Skyway Development for residential elevator in South Slope

Mehdi Dayan through the entity 572 5th Ave Realty LLC paid $10.3 million to Skyway Development Group through the entity 572 5th Avenue LLC for the midblock 18-unit residential elevator building at 572-576 5th Avenue in South Slope, Brooklyn.
The deal closed on May 10, 2022 and was recorded on June 9, 2022. The property has 18,900 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $543 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 February 25, 2016, for $10.7 million. The signatory for Skyway Development Group was Steven Marshaal. The signatory for Mehdi Dayan was Mehdi Dayan. Mehdi Dayan is CEO of the owner entity, which has a process address at Ash Development LLC according to DOS records, and Dayan has been CEO of EEC Group.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Mehdi Dayan had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Skyway Development Group had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Steven Mashaal, head officer and Shlomo Bakhash, officer. The business entities are Livingston Management Services Llc and 572 5th Ave Llc. The 18,900-square-foot property generated revenue of $478,784 or $25 per square foot, according to the most recent income and expense figures.

The property

The 572-576 5th Avenue parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 square feet. The zoning is C4-3A which allows for up to 3 times floor area ratio (FAR) for commercial and up to 3 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2012 and expires in 2037. 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 since September of 2020. In addition, according to city public data, the property has received eight housing violations and $550 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 South Slope, the bulk, or 42 percent of the 9.4 million square feet of commercial built space are 1-4 family buildings, with residential walkup buildings next occupying 23 percent of the space. In sales, South Slope has 1.2 times the average sales volume among other neighborhoods with $322.9 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, South Slope has had very little major development activity relative to other neighborhoods.It had 91,369 square feet of commercial and multi-family construction under development in the last two years, which represents 0.98 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 22 commercial properties representing 122,789 square feet of the 171,911 square feet. The largest owner is Jacob Fulop, followed by Kash Group and then Angiola Ianniciello. There are two active new building construction projects totaling 97,226 square feet. The largest is a 70-unit, 85,862-square-foot R-2 building developed by David Ennis with plans filed December 26, 2014 and permitted February 6, 2017. The second largest is a 10-unit, 11,364-square-foot R-2 building developed by Wujie Zhao with plans filed December 13, 2012 and it has not been permitted yet.

The majority, or 47 percent of the 263,309 square feet of built space are residential elevator buildings, with 1-4 family buildings next occupying 34 percent of the space.

Surrounding

Within a 400-foot radius of 572-576 5th Avenue, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, two were sales above $5 million totaling $30 million. The most recent of the two was Angelo Rigas which bought the 1,444-square-foot, one-unit townhouse (A9) on 188 16th Street and nine other properties for $22.5 million from Alice Halkias on July 14, 2021.
One of those three items was a loan which Kupferman family borrowed $10.2 million from Cross River Bank secured by the 9,938-square-foot, nine-unit rental (C7) on 591 5th Avenue and two other properties on May 9, 2022.

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