Rubin Margules affiliate pays $15M for 84-unit rental in Sheepshead Bay

Rubin Margules as signatory through the entity 1815 Property LLC paid $15 million to Warren Cohen through the entity The Sherry House, L.L.C. for the 84-unit residential elevator building (D1) at 1815 East 17th Street in Sheepshead Bay, Brooklyn.
The deal closed on November 30, 2022 and was recorded on December 5, 2022. The property has 73,932 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $202 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 Warren Cohen was Warren Cohen. The signatory for Rubin Margules was Rubin Margules.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Rubin Margules had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Warren Cohen had not purchased any other properties and sold one properties in one transactions for a total of $10.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Steven Cohen, head officer and Halil Ljesnjanin, officer. The business entity is The Sherry House Llc.

The property

The 1815 East 17th Street parcel has frontage of 150 feet and is 144 feet deep with a total lot size of 19,100 square feet. The lot is irregular. The zoning is R5B which allows for up to 1.35 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $5.9 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 41 housing violations and one housing litigation 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 block

On this tax block, PincusCo has identified the owners of three of the 10 commercial properties representing 222,330 square feet of the 413,658 square feet. The two identified owners are NYC Department of Education and David Winiarski.
There are no active new building construction projects on this tax block.

The majority, or 54 percent of the 413,658 square feet of built space are specialty buildings, with elevator buildings next occupying 38 percent of the space.

The buyer

The PincusCo database currently indicates that Rubin Margules owned at least two commercial properties in New York City with 165,688 square feet and a city-determined market value of $7.7 million. (Market value is typically about 50% of actual value.) The portfolio has $15 million in debt, borrowed from JPMorgan Chase. Within the portfolio, all identified are elevator properties. They are all located in Brooklyn.

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