Nonprofit Braverhood pays $10M for office building in Borough Park

The nonprofit Braverhood through the entity Braverhood, Ltd paid $10 million to William Nussen and Malka Nussen through the entity 1527 Realty LLC for the office building (O2) at 1527 60th Street in Borough Park, Brooklyn.
The deal closed on June 15, 2023 and was recorded on June 21, 2023. The property has 5,745 square feet of built space and 7,309 square feet of additional air rights for a total buildable of 13,052 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,740 and the price per buildable square foot is $766 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 William Nussen and Malka Nussen was William Nussen and Malka Nussen. The signatory for Braverhood was Israel Benedek. Braverhood was formerly known as Hand in Hand Family Services and offers services for mentally and physically challenged individuals. Benedek is CEO.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Braverhood had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller William Nussen had not purchased any other properties and sold one property in one transaction for a total of $4 million over the same time period. The 5,745-square-foot property generated revenue of $176,340 or $31 per square foot, according to the most recent income and expense figures.

The property

The office building in Borough Park has 5,745 square feet of built space and 7,309 square feet of additional air rights for a total buildable of 13,052 square feet according to a PincusCo analysis of city data. The parcel has frontage of 32 feet and is 100 feet deep with a total lot size of 3,263 square feet. 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 $831,000.

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 Borough Park, The bulk, or 25 percent of the 23.2 million square feet of commercial built space are specialty buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Borough Park has 1.2 times the average sales volume among other neighborhoods with $429.4 million in sales volume in the last two years and is the 17th highest in Brooklyn. For development, Borough Park has had very little major development activity relative to other neighborhoods.It had 829,269 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 10 commercial properties representing 18,868 square feet of the 72,109 square feet. The largest owner is William Nussen, followed by Joshua Dembitzer and then Beitel Group.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 72,109 square feet of built space are industrial buildings, with mixed-use buildings next occupying 29 percent of the space.

The seller

The PincusCo database currently indicates that William Nussen owned at least one commercial property in New York City with 8,220 square feet and a city-determined market value of $683,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Brooklyn.

Direct link to Acris document. link