Yeshivah of Flatbush pays $13.5M to Michael Katz for specialty in Midwood

Yeshivah of Flatbush paid $13.5 million to Michael Katz through the entity KGS Po LLC for the specialty building (Z3) at 1296 Coney Island Avenue in Midwood, Brooklyn.
The deal closed on July 28, 2022 and was recorded on August 2, 2022. The property has 15,400 square feet of built space and 7,020 square feet of additional air rights for a total buildable of 22,500 square feet according to PincusCo analysis of city data. The sale price per built square foot is $876 and the price per buildable square foot is $600 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 Michael Katz was Michael Katz. The signatory for Yeshivah of Flatbush was Abraham Hanan. The contract was signed May 4, 2021. The late Stanley Gallant, a real estate investor who died in April 2022, was a co-owner of this parcel.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Yeshivah of Flatbush purchased one property in one transaction for a total of $2.1 million and has no record it sold any properties over the past 24 months.
The seller Michael Katz had not purchased any other properties and had not sold any properties over the same time period.

The property

The 1296 Coney Island Avenue parcel has frontage of 180 feet and is 100 feet deep with a total lot size of 18,000 square feet. 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 $2 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 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 $5 million on this tax lot.

The neighborhood

In Midwood, the majority, or 53 percent of the 19.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 15 percent of the space. In sales, Midwood has 1.2 times the average sales volume among other neighborhoods with $419.5 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Midwood has had very little major development activity relative to other neighborhoods.It had 535,296 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 this tax block, PincusCo has identified the owners of one of the 14 commercial properties representing 23,400 square feet of the 300,361 square feet. The identified owner is Frey Management. There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 300,361 square feet of built space are specialty buildings, with elevator buildings next occupying 31 percent of the space.

The seller

The PincusCo database currently indicates that Michael Katz owned at least three commercial properties in New York City with 44,453 square feet and a city-determined market value of $12.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 84 percent of the 44,453 square feet of built space are elevator properties, with walkup properties next occupying 16 percent of the space. The bulk, or 55 percent of the built space, is in Brooklyn, with Manhattan next at 45 percent of the space.

The buyer

The PincusCo database currently indicates that Yeshivah Of Flatbush owned at least one commercial property in New York City with 4,576 square feet and a city-determined market value of $721,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single M9 property. It is located in Brooklyn.

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