Michael, Edward Ostad sign $90M loan with Derby Copeland for $102.5M Brooklyn portfolio

Michael Ostad and Edward Ostad through the entity MEO 192 Flatbush Avenue LLC as borrower signed a acquisition loan with lender Derby Copeland Capital through the entity FCR DC JV Atlas Seller LLC valued at $90 million for 26 properties with 86 residential units including the seven-unit residential walkup building (C7) at 192-194 Flatbush Avenue in Park Slope, Brooklyn, six-unit mixed-use building (S5) at 202 Flatbush Avenue in Park Slope, Brooklyn, and three-unit mixed-use building (S3) at 468 Bergen Street in Park Slope, Brooklyn.
The Ostads bought the buildings on January 10, 2025 for $102.5 million.

The loan also closed on January 10, 2025, and was recorded on February 5, 2025. The prior lenders included Dime Community Bank.
The 26 properties have 110,969 square feet of built space and 67,607 square feet of additional air rights for a total buildable of 172,340 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $811 and the price per buildable square foot is $522 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 Michael Ostad and Edward Ostad was Michael Ostad. The signatory for Derby Copeland Capital was Jesse Hutcher.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received three housing violations and $3,050 in OATH penalties in the last year.

Development

For the tax lot buildings, six out of the 26 buildings received a initial certificate of occupancy in the last ten years. 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 the tax block of 192-194 Flatbush Avenue, PincusCo has identified the owners of 11 of the 23 commercial properties representing 48,309 square feet of the 92,156 square feet. The largest owner is Edward Ostad, followed by Michael Ostad and then Matthew Pintchik.
There are no active new building construction projects on this tax block.

The majority, or 63 percent of the 92,156 square feet of built space are mixed-use buildings, with walkup buildings next occupying 21 percent of the space.

The borrower

The PincusCo database currently indicates that Edward Ostad owned at least 62 commercial properties with 783 residential units in New York City with 774,186 square feet and a city-determined market value of $184.2 million. (Market value is typically about 50% of actual value.) The portfolio has $214.6 million in debt, with top three lenders as Signature Bank, New York Community Bank, and Amalgamated Bank respectively. Within the portfolio, the bulk, or 42 percent of the 774,186 square feet of built space are walkup properties, with elevator properties next occupying 37 percent of the space. The bulk, or 54 percent of the built space, is in Manhattan, with Brooklyn next at 25 percent of the space.
The PincusCo database currently indicates that Michael Ostad owned at least 26 commercial properties with 86 residential units in New York City with 111,964 square feet and a city-determined market value of $57.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 84 percent of the 111,964 square feet of built space are mixed-use properties, with walkup properties next occupying 12 percent of the space. The bulk, or 97 percent of the built space, is in Brooklyn, with Bronx next at 3 percent of the space.

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