Mordechai Kohn pays $5M to Hello Living for 53-unit dev site in Brownsville

Mordechai Kohn through the entity Mks 209 LLC paid $5 million to Hello Living through the entity Hello Sutter LLC for the 53-unit development site at 203 Sutter Avenue in Brownsville, Brooklyn. At the same time, Kohn obtained a $19.9 million construction loan from Parke Bank.
The deal closed on August 18, 2022 and was recorded on August 30, 2022. The property has 56,964 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $87 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 August 8, 2017, for $5.6 million. The signatory for Hello Living was Eli Karp. The signatory for Mordechai Kohn was Mordechai Kohn.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Mordechai Kohn had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Hello Living had not purchased any other properties and had not sold any properties over the same time period.

The property

The 203 Sutter Avenue parcel has frontage of 100 feet and is 122 feet deep with a total lot size of 12,292 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 $2.6 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 three DOB violations, $7,500 in ECB penalties, and $10,730 in OATH penalties in the last year.

Development

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 72,990 square feet. The largest is a major alteration project for a 53-unit, 45,853-square-foot R-2 building developed by Moses Gross with plans filed April 24, 2015 and it has not been permitted yet. The second largest is a new building project for a 54-unit, 42,297-square-foot R-2 building developed by Aryeh Simon with plans filed April 7, 2022 and it has not been permitted yet.

The block

On this tax block, PincusCo has identified the owners of three of the 10 commercial properties representing 12,360 square feet of the 113,129 square feet. The identified owner is Mouris Zakaria.
There are three active new building construction projects totaling 116,108 square feet. The largest is a 66,193-square-foot school (E) building developed by Moses Kupferstein with plans filed June 21, 2022 and it has not been permitted yet.The second largest is a nine-unit, 7,618-square-foot R-2 building developed by Meilech Friedman with plans filed May 3, 2022 and permitted August 4, 2022.

The majority, or 50 percent of the 113,129 square feet of built space are elevator buildings, with walkup buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that Hello Living owned at least four commercial properties in New York City with 253,008 square feet and a city-determined market value of $45.2 million. (Market value is typically about 50% of actual value.) The portfolio has $57.8 million in debt, with top three lenders as Greystone & Co., Cantor Commercial Real Estate Lending, and Madison Realty Capital respectively. Within the portfolio, all identified are elevator properties. They are all located in Brooklyn.

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