Yitzchok Schwartz pays $6.2M to City Urban Realty for 16-unit walkup in Bedford Stuyvesant

Yitzchok Schwartz through the entity 385 Vernon Estates LLC paid $6.2 million to City Urban Realty through the entity 385 Vernon Associates LLC for the 16-unit residential walkup building (C1) at 385 Vernon Avenue in Bedford Stuyvesant, Brooklyn. The expected use is cash flowing.
The deal closed on July 17, 2024 and was recorded on July 29, 2024. The property has 14,615 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $424 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 22, 2016, for $5.9 million. The signatory for City Urban Realty was Michael Alvandi. The signatory for Yitzchok Schwartz was Yitzchok Schwartz. The contract date was April 18, 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 $67.6 million and sold one property in one transaction for a total of $9 million over the past 24 months.
The seller City Urban Realty purchased two properties in two transactions for a total of $13.6 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Michael Alvandi, head officer and Tony Cordero, site manager. The business entity is 385 Vernon Associates Llc.

The property

The residential walkup building with 16 residential units in Bedford Stuyvesant has 14,615 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 65 feet and is 89 feet deep with a total lot size of 6,504 square feet. The lot is irregular. 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 $2.5 million.

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 $600 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 block

On this tax block, PincusCo has identified the owners of two of the 13 commercial properties representing 317,878 square feet of the 406,778 square feet. The two identified owners are City Urban Realty and Spencer An.
On the tax block, there was one new building construction project filed totaling 195,548 square feet. It is a 233-unit, 195,548 square-foot residential (R-2) building submitted by Shorewood Real Estate Group and filed by Hugo Corvalan with plans filed June 18, 2020 and permitted November 17, 2021.

The majority, or 75 percent of the 406,778 square feet of built space are elevator buildings, with hotel buildings next occupying 10 percent of the space.

The seller

The PincusCo database currently indicates that City Urban Realty owned at least eight commercial properties with 88 residential units in New York City with 69,276 square feet and a city-determined market value of $14.3 million. (Market value is typically about 50% of actual value.) The portfolio has $50.1 million in debt, with top three lenders as Calmwater Capital, Signature Bank, and Northeast Bank respectively. Within the portfolio, the bulk, or 81 percent of the 69,276 square feet of built space are walkup properties, with mixed-use properties next occupying 19 percent of the space. The bulk, or 77 percent of the built space, is in Brooklyn, with Manhattan next at 23 percent of the space.

The buyer

The PincusCo database currently indicates that Yitzchok Schwartz owned at least 12 commercial properties with 379 residential units in New York City with 441,386 square feet and a city-determined market value of $64.8 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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