Mohammed Naeem pays $9M to Yitzchok Schwartz for retail in Bedford Stuyvesant

Mohammed Naeem through the entity 948 Myrtle Enterprise LLC paid $9 million to Yitzchok Schwartz through the entity Cornell Myrtle LLC for the retail condo at 948 Myrtle Avenue in Bedford Stuyvesant, Brooklyn.
The deal closed on July 18, 2023 and was recorded on July 21, 2023. The property has 20,741 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $433 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 Yitzchok Schwartz was Danielle Sidiropoulos. The signatory for Mohammed Naeem was Stefani Nasser.
TBG Funding provided a $5.8 million loan to finance the acquisition.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Mohammed Naeem had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Yitzchok Schwartz purchased three properties in two transactions for a total of $5.2 million and sold one properties in one transactions for a total of $24 million over the same time period.

The property

The retail condo in Bedford Stuyvesant has 20,741 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 20,741 square feet. The city-designated market value for the property in 2022 is $3.2 million. The most recent loan totaled $11.5 million and was provided by Emerald Creek Capital on April 28, 2022.

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 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 $1 million on this tax lot.

The neighborhood

In Bedford Stuyvesant, The bulk, or 35 percent of the 54.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has 2.8 times the average sales volume among other neighborhoods with $981.7 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Bedford Stuyvesant has 3.4 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Brooklyn. It had 3.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the eight commercial properties representing 123,045 square feet of the 150,205 square feet. The largest owner is Shmary Baumgarten, followed by Sam Rubin and then Moses Mizrahi.
On the tax block, there was one new building construction project filed totaling 34,699 square feet. It is a 40-unit, 34,699 square-foot residential (R-2) building submitted by Cornell Realty Management and filed by Shifra Hager with plans filed March 9, 2015 and it has not been permitted yet.

The majority, or 70 percent of the 150,205 square feet of built space are walkup buildings, with mixed-use buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that Yitzchok Schwartz owned at least eight commercial properties with 356 residential units in New York City with 352,586 square feet and a city-determined market value of $56.2 million. (Market value is typically about 50% of actual value.) The portfolio has $110.5 million in debt, with top three lenders as Greystone & Co., Kearny Bank, and Popular Bank respectively. Within the portfolio, the bulk, or 99 percent of the 352,586 square feet of built space are elevator properties, with development properties next occupying 1 percent of the space. The bulk, or 83 percent of the built space, is in Brooklyn, with Queens next at 17 percent of the space.

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