Zelig Weiss pays $9.6M for dev site in Flatbush

Zelig Weiss through the entity 545 Coney Island LLC paid a total of $9.6 million in two transactions for three tax parcels that make up the land for a previously disclosed 72-unit development with the address 545 Coney Island Avenue.

In the larger transaction, Weiss paid $7.6 million to Leon Perlmutter through the entity Jenium LLC for the retail building (K1) at 547 Coney Island Avenue in Flatbush, Brooklyn.
The sale closed on May 24, 2024 and was recorded on May 30, 2024. The property has 3,600 square feet of built space and 18,521 square feet of additional air rights for a total buildable of 22,137 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $2,111 and the price per buildable square foot is $343 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 May 3, 2007, for $2.2 million. The signatory for Leon Perlmutter was Leon Perlmutter. The signatory for the buyer was Zelig Weiss. The contract date was May 24, 2024.

In the second transaction, Weiss through 545 Coney Island LLC paid $2 million to V.D. Vilst Inc. for the industrial building (G2) at 50 Hinckley Place in Flatbush, Brooklyn and industrial building (G2) at 545 Coney Island Avenue in Flatbush, Brooklyn.
The deal closed on May 24, 2024 and was recorded on May 30, 2024. The two properties have 7,912 square feet of built space and 27,202 square feet of additional air rights for a total buildable of 35,130 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $252 and the price per buildable square foot is $56 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.)

On the tax block, there is a new building construction project for a 72-unit, 57,245 square-foot residential (R-2) building submitted by Zelig Weiss and filed by Zelig Weiss with plans filed March 28, 2022 and permitted May 31, 2022. (The original plan called for 74 units.)

Prior sales and revenue

The seller Leon Perlmutter purchased one properties in one transactions for a total of $2.8 million and had not sold any properties over the same time period. The 3,600-square-foot property generated revenue of $131,733 or $37 per square foot, according to the most recent income and expense figures.

The property

The retail building in Flatbush has 3,600 square feet of built space and 18,521 square feet of additional air rights for a total buildable of 22,137 square feet according to a PincusCo analysis of city data. The parcel has frontage of 66 feet and is 105 feet deep with a total lot size of 7,379 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.1 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 not received any significant violations 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 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 near average sales volume among other neighborhoods with $270.8 million in sales volume in the last two years and is the 28th highest in Brooklyn. For development, Flatbush has 1.4 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Brooklyn. It had 1.6 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 the tax block, there was one new building construction project filed, for 545 Coney Island Avenue.

The majority, or 69 percent of the 11,512 square feet of built space are industrial buildings, with retail buildings next occupying 31 percent of the space.

The seller

The PincusCo database currently indicates that Leon Perlmutter owned at least one commercial property in New York City with 6,000 square feet and a city-determined market value of $470,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Brooklyn.

Correction: A prior version of this post incorrectly identified the buyer as Zelig Weiss of AZW Realty. In fact this is Zelig Weiss of Riverside Developers USA.

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