Yitzchok Katz through the entity 570 Fulton St LLC paid $24.1 million to Davis Companies through the entity 570 Fulton Street Property LLC for the development site at 570 Fulton Street in Fort Greene, Brooklyn.
On the lot, there is one active new building construction project for a 123-unit, 199,736 square-foot R-2 building. The project was submitted by Stephen Skolas of Davis Companies with plans filed August 30, 2021.
To finance the purchase, Yitzchok Katz through the entity 570 Fulton St LLC as borrower signed an acquisition loan with lender Slate Property Group through the entity SPG Fulton Lender LLC valued at $54.6 million.
The deal closed on February 2, 2023 and was recorded on February 15, 2023.
The seller bought the property on September 18, 2015, for $22.9 million. The signatory for Davis Companies was Jonathan G. Davis. The signatory for Yitzchok Katz was Yitzchok Katz.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Yitzchok Katz purchased 14 properties in eight transactions for a total of $109.5 million and sold three properties in three transactions for a total of $9.6 million over the past 24 months.
The seller Davis Companies purchased three properties in two transactions for a total of $87.8 million and sold two properties in one transactions for a total of $2.9 million over the same time period. The 26,388-square-foot property generated revenue of $1.2 million or $44 per square foot, according to the most recent income and expense figures.
The 570 Fulton Street parcel has frontage of 100 feet and is 86 feet deep with a total lot size of 7,192 square feet. The lot is irregular. The zoning is C6-9 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.4 million.The most recent loan totaled 0.0 and was provided by Davis Companies on December 30, 2020.
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 received four DOB violations and $1,250 in OATH penalties in the last year.
In Fort Greene, the bulk, or 28 percent of the 11.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 25 percent of the space. In sales, Fort Greene has 1.6 times the average sales volume among other neighborhoods with $564.9 million in sales volume in the last two years and is the 10th highest in Brooklyn. For development, Fort Greene has 2.3 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Brooklyn. It had 2.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space.
On this tax block, PincusCo has identified the owners of four of the 13 commercial properties representing 205,262 square feet of the 704,426 square feet. The largest owner is Meadow Partners, followed by Slate Property Group and then Alfred Attara.
On the tax block, there were two new building construction projects totaling 342,478 square feet. The largest is a 183-unit, 142,742-square-foot R-2 building developed by David Schwartz of Slate Property Group with plans filed October 16, 2014 and permitted January 8, 2016. The second largest is a 123-unit, 199,736-square-foot R-2 building developed by Stephen Skolas with plans filed August 30, 2021 and permitted April 7, 2022.
The majority, or 95 percent of the 350,015 square feet of built space are office buildings, with retail buildings next occupying 3 percent of the space.
The PincusCo database currently indicates that Davis Companies owned at least three commercial properties in New York City with 189,389 square feet and a city-determined market value of $11.8 million. (Market value is typically about 50% of actual value.) The portfolio has $117.7 million in debt, borrowed from Santander Bank and City National Bank. Within the portfolio, the bulk, or 97 percent of the 189,389 square feet of built space are industrial properties, with development properties next occupying 3 percent of the space. The bulk, or 80 percent of the built space, is in Queens, with Manhattan next at 20 percent of the space.
The PincusCo database currently indicates that Yitzchok Katz owned at least 18 commercial properties in New York City with 172,909 square feet and a city-determined market value of $29.9 million. (Market value is typically about 50% of actual value.) The portfolio has $302.7 million in debt, with top three lenders as G4 Capital Partners, SCALE Lending, and Popular Bank respectively. Within the portfolio, the bulk, or 51 percent of the 172,909 square feet of built space are elevator properties, with walkup properties next occupying 20 percent of the space. The bulk, or 81 percent of the built space, is in Brooklyn, with Queens next at 19 percent of the space.
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