Satmar congregation pays $1.5M for second piece of dev site in Borough Park

Congregation Yetev Lev D’Satmar through the entity Congregation Yetev Lev Of 58th Street paid $1.5 million to Paula Leibowitz through the entity 5802 New Utrecht LLC for the two-unit mixed-use building (K4) at 5802 New Utrecht Avenue in Borough Park, Brooklyn. The expected use is ground up development.
The congregation also owns the adjacent properties with the address 5804-5806 New Utrecht Avenue. Plans were filed in June to demolish all three buildings.
The deal closed on August 20, 2024 and was recorded on September 4, 2024. The property has 5,280 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $284 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 Paula Leibowitz was Zahava Kar. The signatory for Congregation Yetev Lev D’Satmar was Joel Kish. The contract date was April 12, 2024. The Satmar congregation paid $2.7 million for the adjacent parcels, 5804 and 5806 New Utrecht Avenue, in a transaction recorded a few days earlier.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Congregation Yetev Lev D’Satmar purchased $12.6 million of properties and has no record it sold any properties over the past 24 months.
The seller Paula Leibowitz had not purchased any other properties and sold two properties in one transaction for a total of $2.7 million over the same time period. The 5,280-square-foot property generated revenue of $139,521 or $26 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 2 residential units in Borough Park has 5,280 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 74 feet and is 58 feet deep with a total lot size of 2,922 square feet. The lot is irregular. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $591,000.

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 23.3 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 2.3 times the average sales volume among other neighborhoods with $594.9 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Borough Park has near average amount of major developments among other neighborhoods and is the 18th highest in Brooklyn. It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 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

On this tax block, PincusCo has identified the owners of two of the 13 commercial properties representing 7,828 square feet of the 40,822 square feet. The identified owner is Congregation Yetev Lev D’Satmar.
There are no active new building construction projects on this tax block.

The majority, or 60 percent of the 40,822 square feet of built space are mixed-use buildings, with retail buildings next occupying 23 percent of the space.

Direct link to Acris document. link