Yotam Michaeli pays $3.5M for three rentals in Bushwick

Yotam Michaeli through the entity Dekalb BK LLC paid $3.5 million to the properties’ former lender BK 38th Lender LLC for the 27-unit residential elevator building (D6) at 1357 Dekalb Avenue in Bushwick, Brooklyn, 27-unit residential elevator building (D6) at 1351 Dekalb Avenue in Bushwick, Brooklyn, and 27-unit residential elevator building (D6) at 1355 Dekalb Avenue in Bushwick, Brooklyn.
The deal closed on December 7, 2023 and was recorded on December 13, 2023. The three properties have 26,053 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $134 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 BK 38th Lender LLC was Ralph A. Dweck, an attorney. The signatory for Yotam Michaeli was Yotam Michaeli. The contract date was December 7, 2023. The seller BK 38th Lender LLC is an active note buyer and is the former lender that foreclosed through index number 505069/2020 on the property formerly owned by Denis Portaev.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 1351 Dekalb Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Yotam Michaeli purchased one property in one transaction for a total of $1.9 million and sold one property in one transactions for a total of $4.3 million over the past 24 months.
The seller had not purchased any other properties and had not sold any properties over the same time period.

The property

The residential elevator building with 27 residential units in Bushwick has frontage of 25 feet and is 119 feet deep with a total lot size of 2,907 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $423,000.

Violations and lawsuits

According to city public data, the properties have received five DOB violations, $18,750 in ECB penalties, and $20,030 in OATH penalties in the last year.

Development

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 36,772 square feet. The largest is a new building project for a 27-unit, 18,986 square-foot R-2 building submitted by Denis Portaev with plans filed August 15, 2017 and permitted April 19, 2019. The second largest is a new building project for a 27-unit, 17,786 square-foot R-2 building submitted by Joel Brach with plans filed March 3, 2016 and it has not been permitted yet.

The block

On the tax block of 1351 Dekalb Avenue, PincusCo has identified the owners of 17 of the 27 commercial properties representing 70,224 square feet of the 112,748 square feet. The largest owner is New York Police Department, followed by Moskowitz/Trager and then Minotaur Management.
On the tax block, there were six new building construction projects totaling 58,155 square feet. The largest is a 27-unit, 18,986 square-foot residential (R-2) building submitted by Denis Portaev with plans filed August 15, 2017 and permitted April 19, 2019. The second largest is a 27-unit, 17,786 square-foot residential (R-2) building submitted by Joel Brach with plans filed March 3, 2016 and it has not been permitted yet.

The majority, or 56 percent of the 112,748 square feet of built space are walkup buildings, with elevator buildings next occupying 23 percent of the space.

The buyer

The PincusCo database currently indicates that Yotam Michaeli owned at least three commercial properties with 17 residential units in New York City with 7,660 square feet and a city-determined market value of $1.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 84 percent of the 7,660 square feet of built space are walkup properties, with mixed-use properties next occupying 16 percent of the space. They are all located in Brooklyn.

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