Mendel Fleischman pays $5.5M to Madison Realty Capital for mixed-use in Williamsburg

Mendel Fleischman through the entity 168 Garden LLC paid $5.5 million to Madison Realty Capital through the entity 285 Graham Avenue LLC for three-unit mixed-use building (S9) at 285 Graham Avenue in Williamsburg, Brooklyn.
The deal closed on December 29, 2022 and was recorded on January 5, 2023. The property has 6,224 square feet of built space and 5,025 square feet of additional air rights for a total buildable of 11,250 square feet according to PincusCo analysis of city data. The sale price per built square foot is $883 and the price per buildable square foot is $488 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 March 2, 2015, for $4.4 million. The signatory for Madison Realty Capital was Brian Shatz. The signatory for Mendel Fleischman was Mendel Fleischman.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Mendel Fleischman purchased one properties in one transactions for a total of $2.8 million and has no record it sold any properties over the past 24 months.
The seller Madison Realty Capital purchased 26 properties in 21 transactions for a total of $371.7 million and sold nine properties in seven transactions for a total of $89.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Julia Rodriguez, head officer and Vesa Naka, agent. The business entities are Silverstone Property Group Llc and 285 Graham Avenue, Llc.

The property

The 285 Graham Avenue parcel has frontage of 50 feet and is 75 feet deep with a total lot size of 3,750 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.3 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 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 $5 million on this tax lot.

The neighborhood

In Williamsburg, the bulk, or 39 percent of the 49.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 25 percent of the space. In sales, Williamsburg has the 6th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Williamsburg is the 10th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the 17 commercial properties representing 16,923 square feet of the 149,767 square feet. The largest owner is Madison Realty Capital, followed by Jacob Kohn and then Guy Peleg.
On the tax block, there was one new building construction project filed totaling 25,215 square feet. It is a 25-unit, 25,215-square-foot R-2 building developed by Idan Magen with plans filed February 17, 2022 and it has not been permitted yet.

The majority, or 59 percent of the 89,662 square feet of built space are mixed-use buildings, with walkup buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that Madison Realty Capital owned at least 65 commercial properties in New York City with 2,301,306 square feet and a city-determined market value of $366.8 million. (Market value is typically about 50% of actual value.) The portfolio has $914.1 million in debt, with top three lenders as Signature Bank, Athene Annuity And Life Company, and FTLP LLC respectively. Within the portfolio, the bulk, or 56 percent of the 2,301,306 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. The bulk, or 36 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.

The buyer

The PincusCo database currently indicates that Mendel Fleischman owned at least five commercial properties in New York City with 27,063 square feet and a city-determined market value of $2.8 million. (Market value is typically about 50% of actual value.) The portfolio has $16.1 million in debt, with top three lenders as IceCap Group, Valley National Bank, and Joramel LLC respectively. Within the portfolio, the bulk, or 81 percent of the 27,063 square feet of built space are walkup properties, with M9 properties next occupying 19 percent of the space. The bulk, or 81 percent of the built space, is in Brooklyn, with Manhattan next at 19 percent of the space.

Direct link to Acris document. link