Yitzchok Schwartz pays $3.6M for dev site in Bedford Stuyvesant
Yitzchok Schwartz through the entity Vernon Plaza II LLC paid $3.6 million to Qian Yun Chen through the entity Fine Way Inc. for the development building (V0) at 376 Vernon Avenue in Bedford Stuyvesant, Brooklyn.
The deal closed on May 23, 2024 and was recorded on May 30, 2024. The property has zero square feet of built space and 16,998 square feet of additional air rights for a total buildable of 16,998 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $212 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 seller bought the property on February 3, 2005, for $535,000. The signatory for Qian Yun Chen was Qian Yun Chen. The signatory for Yitzchok Schwartz was Yitzchok Schwartz. The contract date was February 24, 2024.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Yitzchok Schwartz purchased four properties in two transactions for a total of $65.5 million and sold one property in one transactions for a total of $9 million over the past 24 months.
The seller Qian Yun Chen had not purchased any other properties and had not sold any properties over the same time period.
The property
The parcel has frontage of 85 feet and is 100 feet deep with a total lot size of 8,499 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $839,000.
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 $3,750 in ECB penalties and $4,650 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 Bedford Stuyvesant, The bulk, or 35 percent of the 54.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has the 9th highest sale turnover among other neighborhoods in the city with $1.2 billion in sales volume in the last two years. For development, Bedford Stuyvesant has 2.2 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 2.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other development buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of 10 of the 13 commercial properties representing 97,026 square feet of the 103,451 square feet. The largest owner is Spencer An, followed by Solomon Schwimmer and then Shahram Mobasser.
On the tax block, there were three new building construction projects totaling 29,814 square feet. The largest is a 27-unit, 18,704 square-foot residential (R-2) building submitted by Farhad Bokhour with plans filed January 30, 2019 and permitted April 8, 2022. The second largest is a eight-unit, 7,308 square-foot residential (R-2) building submitted by Farhad Bokhour with plans filed February 1, 2019 and permitted August 3, 2022.
The majority, or 67 percent of the 103,451 square feet of built space are elevator buildings, with walkup buildings next occupying 27 percent of the space.
The buyer
The PincusCo database currently indicates that Yitzchok Schwartz owned at least 11 commercial properties with 379 residential units in New York City with 441,386 square feet and a city-determined market value of $64 million. (Market value is typically about 50% of actual value.) The portfolio has $227.5 million in debt, with top three lenders as G4 Capital Partners, Greystone & Co., and Kearny Bank respectively. Within the portfolio, the bulk, or 79 percent of the 441,386 square feet of built space are elevator properties, with industrial properties next occupying 20 percent of the space. The bulk, or 87 percent of the built space, is in Brooklyn, with Queens next at 13 percent of the space.
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