Mendel Gold pays $1.6M to Skylight Real Estate for mixed-use in Williamsburg

Mendel Gold through the entity 223-1040 Group LLC paid $1.6 million to Skylight Real Estate Partners through the entity Broadway Williamsburg Four LLC for the two-unit mixed-use building (S2) at 384 South 2nd Street in Williamsburg, Brooklyn.
The deal closed on September 21, 2023 and was recorded on October 6, 2023. The property has 2,400 square feet of built space and 668 square feet of additional air rights for a total buildable of 3,066 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $687 and the price per buildable square foot is $538 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 April 21, 2016, for $1.4 million. The signatory for Skylight Real Estate Partners was Anthony J. Cornicello. The signatory for Mendel Gold was Mendel Gold. The contract date was April 4, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Mendel Gold purchased one property in one transaction for a total of $1.3 million and sold three properties in two transactions for a total of $16.3 million over the past 24 months.
The seller Skylight Real Estate Partners had not purchased any other properties and sold three properties in three transactions for a total of $9.1 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Gregory Bucks, head officer and Igli Jaupi, agent. The business entities are Canvas Property Group and Williamsburg 4 Management Llc.

The property

The mixed-use building with 2 residential units in Williamsburg has 2,400 square feet of built space and 668 square feet of additional air rights for a total buildable of 3,066 square feet according to a PincusCo analysis of city data. The parcel has frontage of 23 feet and is 54 feet deep with a total lot size of 1,262 square feet. 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 $1.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $300 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 $1 million on this tax lot.

The neighborhood

In Williamsburg, The bulk, or 39 percent of the 50.4 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 5th highest sale turnover among other neighborhoods in the city with $2.7 billion in sales volume in the last two years. For development, Williamsburg is the 9th most active neighborhood among other neighborhoods. It had 4.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space. There were four 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 14 of the 19 commercial properties representing 233,124 square feet of the 294,522 square feet. The largest owner is Sholem Kestenbaum, followed by Shloma Stuhl and then Scosha Woolridge.
There are no active new building construction projects on this tax block.

The majority, or 71 percent of the 294,522 square feet of built space are elevator buildings, with walkup buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Skylight Real Estate Partners owned at least 23 commercial properties with 376 residential units in New York City with 345,502 square feet and a city-determined market value of $65.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 64 percent of the 345,502 square feet of built space are walkup properties, with elevator properties next occupying 35 percent of the space. The bulk, or 79 percent of the built space, is in Manhattan, with Brooklyn next at 21 percent of the space.

The buyer

The PincusCo database currently indicates that Mendel Gold owned at least 19 commercial properties with 143 residential units in New York City with 145,806 square feet and a city-determined market value of $27.3 million. (Market value is typically about 50% of actual value.) The portfolio has $7.8 million in debt, borrowed from Arbor Realty Trust. Within the portfolio, the bulk, or 56 percent of the 145,806 square feet of built space are walkup properties, with mixed-use properties next occupying 29 percent of the space. They are all located in Brooklyn.

Direct link to Acris document. link