Slate Property Group pays $24.4M for properties in Sheepshead Bay

Slate Property Group through the entity Coyle Street Owner LLC paid $24.4 million to Robert Fischman of Berkoff Supply through the entity Coyle Properties LLC for the mixed-use building (K1) at 2134 Coyle Street in Sheepshead Bay, Brooklyn and property at 2114 Coyle Street in Sheepshead Bay, Brooklyn.
The deal closed on May 23, 2024 and was recorded on June 4, 2024. The two properties have 25,380 square feet of built space and 82,437 square feet of additional air rights for a total buildable of 107,997 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $960 and the price per buildable square foot is $225 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 Robert Fischman of Berkoff Supply was Robert Fischman. The signatory for Slate Property Group was Stephen Krasman. The contract date was December 21, 2022. Arnold Fischman bought the building in 1998 through a foreclosure action. Berkoff Supply remains open and moved to a new location. It describes itself: “Established in 1920, Berkoff Supply has been providing maintenance and janitorial solutions to contractors, building superintendents, landlords, and property managers for nearly a century.”

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 2134 Coyle Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Slate Property Group purchased nine properties in eight transactions for a total of $307.6 million and sold three properties in three transactions for a total of $26.5 million over the past 24 months.
The seller Robert Fischman had not purchased any other properties and had not sold any properties over the same time period.

The property

The mixed-use building in Sheepshead Bay has 25,380 square feet of built space and 82,437 square feet of additional air rights for a total buildable of 107,997 square feet according to a PincusCo analysis of city data. The parcel has frontage of 360 feet and is 100 feet deep with a total lot size of 35,999 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.8 million.

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 four DOB violations and $1,200 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. On these lots, there is one active new building construction project for a 175-unit, 92,643 square-foot R-1 building. The project was submitted by Slate Property Group and filed by David Schwartz with plans filed August 14, 2023 and it has not been permitted yet.

The neighborhood

In Sheepshead Bay, The bulk, or 43 percent of the 26.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Sheepshead Bay has 1.7 times the average sales volume among other neighborhoods with $469.7 million in sales volume in the last two years and is the 14th highest in Brooklyn. For development, Sheepshead Bay has had very little major development activity relative to other neighborhoods.It had 866,057 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. There were two pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On the tax block, there was one new building construction project filed totaling 92,643 square feet. It is a 175-unit, 92,643 square-foot hotel/dormitory/shelter (R-1) building submitted by Slate Property Group and filed by David Schwartz with plans filed August 14, 2023 and it has not been permitted yet.

The majority, or 57 percent of the 58,300 square feet of built space are mixed-use buildings, with retail buildings next occupying 43 percent of the space.

The buyer

The PincusCo database currently indicates that Slate Property Group owned at least 52 commercial properties with 2,824 residential units in New York City with 3,035,062 square feet and a city-determined market value of $746 million. (Market value is typically about 50% of actual value.) The portfolio has $1.3 billion in debt, with top three lenders as Mack Real Estate Group, Apollo Global Management, and Signature Bank respectively. Within the portfolio, the bulk, or 79 percent of the 3,035,062 square feet of built space are elevator properties, with walkup properties next occupying 10 percent of the space. The bulk, or 55 percent of the built space, is in Manhattan, with Queens next at 29 percent of the space.

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