Multifamily owner Samuel Shpelfogel pays $18M to Jeffrey Berger for medical space in Flatbush

Samuel Shpelfogel, through the entity Newkirk Group LLC paid $18 million to Jeffrey Berger through the entity B&K Realty Associates, LLC for the mixed-use corner building at 1401 Newkirk Avenue in Flatbush, Brooklyn.

The deal closed on March 15, 2022 and was recorded on March 30, 2022. The property has 23,035 square feet of built space and 74,264 square feet of additional air rights for a total buildable of 97,290 square feet according to PincusCo analysis of city data.

The property is currently occupied by the Maimonides Adult & Pediatric Care center of Newkirk Avenue.

In January, Shpelfogel sold a Brighton Beach office building for $14.4 million. The Shpelfogel family, including Samuel and Mitchell, owns at least seven multifamily buildings in Brooklyn, including six walkups and one elevator building with a total of 337 residential units.

The sale price per built square foot is $781 and the price per buildable square foot is $185 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 March 10, 2008, for $840,000.

Prior sales and revenue

The 23,035-square-foot property generated revenue of $635,720 or $28 per square foot, according to the most recent income and expense figures.

The property

The 1401 Newkirk Avenue parcel has frontage of 219 feet and is 130 feet deep with a total lot size of 32,430 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.6 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received one DOB violation, $625 in ECB penalties, and $1,625 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 neighborhood

In Flatbush, the bulk, or 47 percent of the 51.8 million square feet of commercial built space are residential elevator buildings, with 1-4 family buildings next occupying 17 percent of the space. In sales, Flatbush has had very little sales volume relative to other neighborhoods with $208.8 million in sales volume in the last two years. For development, Flatbush has near average amount of major developments among other neighborhoods and is the 20th highest in Brooklyn. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

There are no active new building construction projects on this tax block.

The majority, or 67 percent of the 69,079 square feet of built space are 1-4 family buildings, with mixed-use buildings next occupying 33 percent of the space.

Surrounding

Within a 400-foot radius of 1401 Newkirk Avenue, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, two were for major renovation including a certificate of occupancy change. They were two permit applications with a total initial cost of $1,000,000. The most recent of these two items was the filing on December 7, 2020 for a 7,272-square-foot retail (M) building with no residential units at 601 Marlborough Road.
One of those three items was a loan which Pinnacle Group borrowed $7.4 million from New York Community Bank secured by the 27,200-square-foot, 16-unit rental (C1) on 615 Rugby Road and two other properties on February 9, 2022.

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