Mehrdad Lavian pays $2.5M for foreclosed 6-unit in Bedford Stuyvesant

Mehrdad Lavian and Edmond Yazdan through the entity 1556 Fulton Street Bricks LLC paid $2.5 million to Magnetar Financial through the entity Chondrite REO (5) Inc. for the six-unit property at 1556 Fulton Street in Bedford Stuyvesant, Brooklyn.
The deal closed on March 22, 2024 and was recorded on April 12, 2024. The property has 6,470 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $378 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.)
Magnetar Financial controls Chondrite Asset Trust. Michael Israel and Joel Israel bought the property in 2014 for $840,000, enlarged it, and later borrowed $2.175 million in November 2016. On July 13, 2023, Magnetar through Chondrite REO took the property back through a foreclosure sale.
The seller bought the property on April 9, 2014, for $840,000.
Last year, Lavian paid $2.7 million for another rental in Bedford Stuyvesant.

The property

The parcel has a total lot size of 6,470 square feet. The city-designated market value for the property in 2022 is $639,000.

Violations and lawsuits

The property was involved in zero lawsuits and one bankruptcy over the past two years. The bankruptcy was filed on April 27, 2022, by Michael Israel citing assets of $2.8 million. In addition, according to city public data, the property has received one DOB violation, $3,125 in ECB penalties, and $5,605 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 2, 2020. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of nine of the 21 commercial properties representing 161,435 square feet of the 220,699 square feet. The largest owner is Arker Companies, followed by Briarwood Organization and then Dalan Managment.
On the tax block, there were three new building construction projects totaling 73,409 square feet. The largest is a 49-unit, 56,343 square-foot residential (R-2) building submitted by Eckstein Yisroel with plans filed May 13, 2015 and permitted December 24, 2015. The second largest is a 10-unit, 11,197 square-foot residential (R-2) building submitted by Rona Reodica with plans filed May 7, 2020 and permitted August 22, 2023.

The majority, or 63 percent of the 220,699 square feet of built space are elevator buildings, with mixed-use buildings next occupying 19 percent of the space.

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