Yoel Zagelbaum affiliate pays $31M for 197-bed homeless shelter in Flatbush

A Yoel Zagelbaum affiliate through the entity 21 Duryea Propco LLC paid $31 million to David Levitan and Yosef Rabinowitz through the entity Duryea Parking LLC for the homeless shelter building (N2) at 21 Duryea Place in Flatbush, Brooklyn. The building has beds for up to 197 individuals.
The deal closed on December 21, 2023 and was recorded on January 4, 2024. The property has 33,163 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $934 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 David Levitan and Yosef Rabinowitz was David Levitan. The signatory for Yoel Zagelbaum was Yoel Zagelbaum. The contract date was July 26, 2023. Yosef Rabinowitz was identified as a member of the seller entity, on Department of Buildings documents. On floors two through six, there are beds totaling 197.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer, Yoel Zagelbaum affiliates, purchased eight properties in six transactions for a total of $71.7 million and has no record it sold any properties over the past 24 months.
The seller David Levitan purchased one property in one transactios for a total of $12.2 million and sold one property in one transaction for a total of $4 million over the same time period.

The property

The specialty building in Flatbush has 33,163 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 58 feet and is 110 feet deep with a total lot size of 6,462 square feet. The zoning is C4-2 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $468,000. The most recent loan totaled $10.8 million and was provided by TriState Capital Bank on January 20, 2021.

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 $375 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 2, 2023. 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 Flatbush, The majority, or 54 percent of the 37.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 22 percent of the space. In sales, Flatbush has 1.2 times the average sales volume among other neighborhoods with $393.8 million in sales volume in the last two years and is the 19th highest in Brooklyn. For development, Flatbush has 1.5 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Brooklyn. It had 1.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 18 commercial properties representing 51,910 square feet of the 195,166 square feet. The largest owner is Nyc Department Of Housing Preservation And Development, followed by Maverick Management and then Maheshchand M. Ratanji.
On the tax block, there was one new building construction project filed totaling 59,290 square feet. It is a 150-unit, 59,290 square-foot hotel/dormitory/shelter (R-1) building submitted by Maheshchand Ratanji and filed by Nehalkumar Gandhi with plans filed December 10, 2020 and it has not been permitted yet.

The majority, or 62 percent of the 195,166 square feet of built space are specialty buildings, with mixed-use buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that David Levitan owned at least 12 commercial properties with 522 residential units in New York City with 321,071 square feet and a city-determined market value of $50.6 million. (Market value is typically about 50% of actual value.) The portfolio has $88.5 million in debt, with top three lenders as Investors Bank, Popular Bank, and TriState Capital Bank respectively. Within the portfolio, the bulk, or 50 percent of the 321,071 square feet of built space are hotel properties, with walkup properties next occupying 37 percent of the space. The bulk, or 46 percent of the built space, is in Brooklyn, with Queens next at 27 percent of the space.

The buyer

The PincusCo database currently indicates that Yoel Zagelbaum affiliates owned at least 15 commercial properties with 169 residential units in New York City with 340,116 square feet and a city-determined market value of $51.8 million. (Market value is typically about 50% of actual value.) The portfolio has $254.2 million in debt, with top three lenders as Mizuho Bank, Bear Creek Asset Management, and BCTH Investors respectively. Within the portfolio, the bulk, or 31 percent of the 340,116 square feet of built space are N2 properties, with hotel properties next occupying 29 percent of the space. The bulk, or 42 percent of the built space, is in Brooklyn, with Manhattan next at 34 percent of the space.

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