Peak Capital pays $5M for mixed-use in Park Slope

Peak Capital Advisors through the entity 819 Owner LLC paid $5 million to the entity 4 G Realty LLC for the six-unit mixed-use building (S9) at 511 9th Street in Park Slope, Brooklyn. The expected use is cash flowing.
The deal closed on September 20, 2024 and was recorded on October 7, 2024. The property has 6,384 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $783 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 the seller, an entity affiliated with Zipporah Goldstein, was Richard A. Kaplin. The signatory for Peak Capital Advisors was Alex Rabin. The contract date was February 1, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Peak Capital Advisors purchased 18 properties in 18 transactions for a total of $88 million and sold one property in one transaction for a total of $16.5 million over the past 24 months.
The seller Zipporah Goldstein had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Zipporah Goldstein, head officer and Ilan Goldstein, officer. The business entity is 4-G Realty Llc.

The property

The mixed-use building with 6 residential units in Park Slope has 6,384 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 21 feet and is 90 feet deep with a total lot size of 1,890 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The property is in the Park Slope Historic District Extension. The city-designated market value for the property in 2022 is $1.6 million.

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 13 housing violations and $100 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 $1 million on this tax lot.

The neighborhood

In Park Slope, The bulk, or 36 percent of the 9.8 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 26 percent of the space. In sales, Park Slope has 3 times the average sales volume among other neighborhoods with $762.3 million in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Park Slope has had very little major development activity relative to other neighborhoods.It had 752,870 square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the seven commercial properties representing 37,290 square feet of the 64,010 square feet. The largest owner is Sugar Hill Capital Partners, followed by Laura Hobgood and then Timothy Myers.
There are no active new building construction projects on this tax block.

The majority, or 58 percent of the 64,010 square feet of built space are walkup buildings, with elevator buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that Zipporah Goldstein owned at least one commercial property with 32 residential units in New York City with 29,961 square feet and a city-determined market value of $7.9 million. (Market value is typically about 50% of actual value.) The portfolio has $16 million in debt, borrowed from Flagstar Bank. The portfolio consists of at least a single walkup property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Peak Capital Advisors owned at least 49 commercial properties with 464 residential units in New York City with 406,579 square feet and a city-determined market value of $126 million. (Market value is typically about 50% of actual value.) The portfolio has $133.2 million in debt, with top three lenders as Amalgamated Bank, Prime Finance, and Derby Copeland Capital respectively. Within the portfolio, the bulk, or 80 percent of the 406,579 square feet of built space are walkup properties, with mixed-use properties next occupying 12 percent of the space. The bulk, or 41 percent of the built space, is in Brooklyn, with Manhattan next at 30 percent of the space.

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