Shlomo Zaga pays $3M for 7 contiguous retail properties in Flatlands

Shlomo Zaga through the entity 1700 Utica LLC paid $3 million to Medoff Realty Corp. for the single-story retail buildings (K1) from 1700 to 1714 Utica Avenue in Flatlands, Brooklyn, with approximately 155 feet of frontage on Utica Avenue.
The deal closed on November 20, 2024 and was recorded on January 10, 2025. The seven properties have 10,855 square feet of built space and 4,630 square feet of additional air rights for a total buildable of 15,500 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $277 and the price per buildable square foot is $194 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 Medoff Realty Corp. and Arlene Esgar was Michael Janus. The signatory for Shlomo Zaga was Shlomo Zaga. The contract date was January 22, 2024. Shlomo Zaga’s ZGi Brands is located at 1704 Utica Avenue, Brooklyn, NY, 11234.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Shlomo Zaga had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Medoff Realty Corp. had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail buildings in Flatlands have 10,855 square feet of built space and 4,630 square feet of additional air rights for a total buildable of 15,500 square feet according to a PincusCo analysis of city data. The parcel has frontage of 155 feet and is 100 feet deep with a total lot size of 15,500 square feet. The zoning is C8-1 which allows for up to 1 times floor area ratio (FAR) for commercial. The city-designated market value for the property in 2022 is $700,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $125 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 Flatlands, The bulk, or 35 percent of the 6.3 million square feet of commercial built space are elevator buildings, with mixed-use buildings next occupying 19 percent of the space. In sales, Flatlands has had very little sales volume relative to other neighborhoods with $104.5 million in sales volume in the last two years. For development, Flatlands has had very little major development activity relative to other neighborhoods.It had 214,839 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 the tax block of 1708 Utica Avenue, PincusCo has identified the owners of four of the 15 commercial properties representing 14,328 square feet of the 51,366 square feet. The largest owner is McDonalds Corporation, followed by Alomari and then Henry Grunbaum.
There are no active new building construction projects on this tax block.

The majority, or 42 percent of the 51,366 square feet of built space are retail buildings, with industrial buildings next occupying 30 percent of the space.

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