Meir David Tabak pays $5.5M to Lazar Waldman for Bushwick dev site with 42 units planned

Meir D. Tabak through the entity 649 Hart St LLC paid $5.5 million to Lazar Waldman through the entity 176 Central LLC for the development parcel at 176 Central Avenue in Bushwick, Brooklyn and adjacent property at 649 Hart Street in Brooklyn.

On these lots, there  is a new building construction project for a 42-unit, 28,035 square-foot R-2 building developed by Lazar Waldman with plans filed March 25, 2022 and it has not been permitted yet.
The plan call for the construction of a 55-foot-tall, five-story building and were filed with the New York City Department of Buildings under job number B00695754. The development site spans multiple tax lots.

The sale closed on January 6, 2023 and was recorded on January 11, 2023. The two properties have 6,762 square feet of built space and 18,974 square feet of additional air rights for a total buildable of 25,758 square feet according to PincusCo analysis of city data. The sale price per built square foot is $813 and the price per buildable square foot is $213 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 Lazar Waldman was Lazar Waldman. The signatory for Meir D. Tabak was Meir D. Tabak.

At the same time, Tabak obtained an $11.5 million construction loan from S3 Capital, with Joshua Crane the signatory for the lender.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 176 Central Avenue.

Prior sales and revenue

The seller Lazar Waldman had not purchased any other properties and sold two properties in two transactions for a total of $7.1 million over the past two years. Out of the two properties, one with a total of 6,762 square feet of built space generated revenue of $111,235 per year.

The property

The 176 Central Avenue parcel has frontage of 73 feet and is 150 feet deep with a total lot size of 10,600 square feet. The lot is irregular. 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 $298,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received one DOB violation, $12,500 in ECB penalties, and $16,100 in OATH penalties in the last year.

The neighborhood

In Bushwick, the bulk, or 44 percent of the 33.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 3 times the average sales volume among other neighborhoods with $1 billion in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.5 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Brooklyn. It had 1.6 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. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

On the tax block of 176 Central Avenue, PincusCo has identified the owners of four of the 22 commercial properties representing 20,933 square feet of the 134,355 square feet. The largest owner is Xiaodan Lu, followed by RiseBoro Community Partnership and then Moses Karpen.
On the tax block, there were three new building construction projects totaling 107,245 square feet. The largest is a 54-unit, 76,080-square-foot R-2 building developed by Evan Stern with plans filed March 19, 2015 and permitted April 13, 2017.

The majority, or 56 percent of the 54,752 square feet of built space are walkup buildings, with mixed-use buildings next occupying 31 percent of the space.

The seller

The PincusCo database currently indicates that Lazar Waldman owned at least eight commercial properties in New York City with 88,559 square feet and a city-determined market value of $10.4 million. (Market value is typically about 50% of actual value.) The portfolio has $6.4 million in debt, borrowed from Sands Capital and Rialto Capital Management. Within the portfolio, the bulk, or 57 percent of the 88,559 square feet of built space are hotel properties, with walkup properties next occupying 32 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database, which is incomplete as it relates to Tabak, currently indicates that Meir D. Tabak owned at least 18 commercial properties in New York City with 384,575 square feet and a city-determined market value of $46.9 million. (Market value is typically about 50% of actual value.) The portfolio has $41.4 million in debt, with top three lenders as Signature Bank, Greystone & Co., and Sterling National Bank respectively. Within the portfolio, the bulk, or 68 percent of the 384,575 square feet of built space are walkup properties, with elevator properties next occupying 31 percent of the space. They are all located in Brooklyn.

Direct link to Acris document. link