Shalom Stahler pays $9M for possible dev site in Crown Heights

Shalom Stahler through the entity Aron Engel LLC paid $9 million to Daniel Kohn and Lucy McNair through the entity Kohn, Daniel for the two-unit office building (O8) at 104 Montgomery Street in Crown Heights, Brooklyn. The expected use is ground up development.
The deal closed on December 19, 2024 and was recorded on December 30, 2024. The property has 12,393 square feet of built space and 25,082 square feet of additional air rights for a total buildable of 37,468 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $726 and the price per buildable square foot is $240 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 Daniel Kohn and Lucy McNair was Daniel Kohn and Lucy McNair. The signatory for Shalom Stahler was Shalom Stahler. The contract date was September 19, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Shalom Stahler had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Daniel Kohn had not purchased any other properties and had not sold any properties over the same time period.

The property

The office building with 2 residential units in Crown Heights has 12,393 square feet of built space and 25,082 square feet of additional air rights for a total buildable of 37,468 square feet according to a PincusCo analysis of city data. The parcel has frontage of 92 feet and is 97 feet deep with a total lot size of 6,224 square feet. The lot is irregular. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.1 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 $400 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 Crown Heights, The bulk, or 39 percent of the 46.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 2.1 times the average sales volume among other neighborhoods with $519.1 million in sales volume in the last two years and is the 10th highest in Brooklyn. For development, Crown Heights has 1.5 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Brooklyn. It had 1.7 million 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 11 of the 13 commercial properties representing 492,308 square feet of the 504,701 square feet. The largest owner is United Management, followed by Yitzchok Schwartz and then Grj Real Estate.
On the tax block, there were two new building construction projects totaling 433,792 square feet. The largest is a 168-unit, 235,482 square-foot residential (R-2) building submitted by Continuum Companies and filed by Ian Bruce Eichner with plans filed January 5, 2022 and permitted May 9, 2022. The second largest is a 293-unit, 198,310 square-foot residential (R-2) building submitted by Abraham Zev Golombeck and filed by Abraham Zev Golombeck with plans filed June 14, 2022 and permitted August 9, 2024.

The majority, or 65 percent of the 504,701 square feet of built space are elevator buildings, with industrial buildings next occupying 20 percent of the space.

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