Meridian Properties pays $6.5M to Jacob Landau for 41-unit rental in Kensington

Meridian Properties through the entity Metatlantic Realty Associates, L.P. paid $6.5 million to Jacob Landau through the entity 690 Ocean Parkway, LLC for 41-unit residential elevator building (D1) at 682 Ocean Parkway in Kensington, Brooklyn.
The deal closed on September 16, 2022 and was recorded on September 27, 2022. The property has 40,800 square feet of built space and 2,150 square feet of additional air rights for a total buildable of 43,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $160 and the price per buildable square foot is $152 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 Jacob Landau was Jacob Landau. The signatory for Meridian Properties was Michael Niamonitakis.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Meridian Properties purchased eight properties in seven transactions for a total of $54.4 million and sold one properties in one transactions for a total of $6.4 million over the past 24 months.
The seller Jacob Landau purchased two properties in two transactions for a total of $1.4 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Jacob Landau, head officer and Lulzim Cahani, site manager. The business entity is 690 Ocean Pkwy Llc. The 40,800-square-foot property generated revenue of $617,225 or $15 per square foot, according to the most recent income and expense figures.

The property

The 682 Ocean Parkway parcel has frontage of 109 feet and is 101 feet deep with a total lot size of 10,750 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.7 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 $100 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 block

On this tax block, PincusCo has identified the owners of one of the six commercial properties representing 91,300 square feet of the 202,644 square feet. The identified owner is ADAPT Community Network.
On the tax block, there was one new building construction project filed totaling 3,852 square feet. It is a one-unit, 3,852-square-foot R-3 building developed by Kenneth Pratt with plans filed December 19, 2012 and permitted December 16, 2015.

The majority, or 50 percent of the 202,644 square feet of built space are elevator buildings, with specialty buildings next occupying 49 percent of the space.

The seller

The PincusCo database currently indicates that Jacob Landau owned at least four commercial properties in New York City with 96,750 square feet and a city-determined market value of $5.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 47 percent of the 96,750 square feet of built space are elevator properties, with walkup properties next occupying 37 percent of the space. The bulk, or 63 percent of the built space, is in Brooklyn, with Manhattan next at 37 percent of the space.

The buyer

The PincusCo database currently indicates that Meridian Properties owned at least 106 commercial properties in New York City with 3,438,223 square feet and a city-determined market value of $185.9 million. (Market value is typically about 50% of actual value.) The portfolio has $93.3 million in debt, with top three lenders as Signature Bank, Dime Community Bank, and New York Community Bank respectively. Within the portfolio, the bulk, or 59 percent of the 3,438,223 square feet of built space are elevator properties, with walkup properties next occupying 40 percent of the space. They are all located in Brooklyn.

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