Nonprofit mental health group pays $4.9M for retail in Sheepshead Bay

The nonprofit Interborough Developmental & Consultation Center paid $4.9 million to the entity Notias Estates LLC for the retail building (O5) at 1670 East 17th Street in Sheepshead Bay, Brooklyn.
The deal closed on January 10, 2024 and was recorded on January 26, 2024. The property has 10,900 square feet of built space and 4,722 square feet of additional air rights for a total buildable of 15,612 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $449 and the price per buildable square foot is $313 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 Evangelia Notias was Evangelia Notias. The signatory for Interborough Developmental & Consultation Center was Mordechai Schecter. The contract date was February 7, 2023. is a nonprofit mental heath care organization with revenues of $63.9 million in 2022, according to its federal filing.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Interborough Developmental & Consultation Center had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Evangelia Notias had not purchased any other properties and had not sold any properties over the same time period. The 10,900-square-foot property generated revenue of $315,228 or $29 per square foot, according to the most recent income and expense figures.

The property

The retail building in Sheepshead Bay has 10,900 square feet of built space and 4,722 square feet of additional air rights for a total buildable of 15,612 square feet according to a PincusCo analysis of city data. The parcel has frontage of 73 feet and is 119 feet deep with a total lot size of 3,903 square feet. The lot is irregular. 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 $1.6 million. The most recent loan totaled 0.0 and was provided by JTS Capital Group on June 5, 2023.

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 received two DOB 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 Sheepshead Bay, The bulk, or 43 percent of the 26.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Sheepshead Bay has 1.5 times the average sales volume among other neighborhoods with $442.4 million in sales volume in the last two years and is the 16th highest in Brooklyn. For development, Sheepshead Bay has near average amount of major developments among other neighborhoods and is the 18th highest in Brooklyn. It had 864,646 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 14 commercial properties representing 103,298 square feet of the 233,945 square feet. The largest owner is Wharton Properties, followed by Ramin Shillian and then Joseph Lazarus.
On the tax block, there was one new building construction project filed totaling 67,989 square feet. It is a 67,989 square-foot mercantile (M) building submitted by Walter Schik with plans filed March 13, 2014 and permitted March 10, 2017.

The majority, or 58 percent of the 233,945 square feet of built space are office buildings, with walkup buildings next occupying 22 percent of the space.

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