Zinoviy Zaltsman pays $11.4M to Lane Capital for formerly bankrupt parcel in Greenwood Heights

Zinoviy Zaltsman through the entity Psz5, LLC paid $11.4 million to Lane Capital Partners through the entity LCP Slope Fee Owner, LLC for the eight-unit mixed-use building (K4) at 665A 5th Avenue in Greenwood Heights, Brooklyn.
The deal closed on February 20, 2024 and was recorded on February 21, 2024. The property has 23,400 square feet of built space and 7,242 square feet of additional air rights for a total buildable of 30,600 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $487 and the price per buildable square foot is $372 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 Lane Capital Partners was Alan Leavitt. The signatory for Zinoviy Zaltsman was Zinoviy Zaltsman. The contract date was January 18, 2023.

Lane Capital Partners acquired the property in January 2021 through a bankruptcy of Chaskiel Strulovitch, with a transfer value of $7.8 million.  Zinoviy Zaltsman, of Solex Construction, filed a $38 million condo plan in Gravesend.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Zinoviy Zaltsman had purchased any other properties and sold three properties in one transaction for a total of $3.4 million over the past 24 months.
The seller Lane Capital Partners had not purchased any other properties and had not sold any properties over the same time period.

The property

The mixed-use building with 8 residential units in Greenwood Heights has 23,400 square feet of built space and 7,242 square feet of additional air rights for a total buildable of 30,600 square feet according to a PincusCo analysis of city data. The parcel has frontage of 120 feet and is 85 feet deep with a total lot size of 10,200 square feet. 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 $1.8 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $1 million judgment concerning a unsafe building filed on June 2, 2022, by City of New York against Lane Capital Partners. In addition, according to city public data, the property has received $1,250 in ECB penalties and $4,660 in OATH penalties in the last year.

Development

On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 14,012 square feet. The largest is a major alteration project for a 18-unit, 30,134 square-foot R-2 building submitted by Chaskiel Strulovitch with plans filed October 19, 2013 and permitted June 2, 2014. The second largest is a major alteration project for a 18-unit, 30,134 square-foot R-2 building submitted by Chesek Strulowitz with plans filed July 18, 2016 and it has not been permitted yet.

The neighborhood

In Greenwood Heights, The bulk, or 37 percent of the 16.2 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 36 percent of the space. In sales, Greenwood Heights has 1.2 times the average sales volume among other neighborhoods with $361.8 million in sales volume in the last two years and is the 21st highest in Brooklyn. For development, Greenwood Heights has 1.5 times the average amount of major developments relative to other neighborhoods and is the 10th 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 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 11 of the 26 commercial properties representing 60,509 square feet of the 159,904 square feet. The largest owner is Nicholas Kotsonis, followed by Martin Mittelman and then Mark Weinberger.
On the tax block, there were two new building construction projects totaling 14,836 square feet. The largest is a eight-unit, 9,834 square-foot residential (R-2) building submitted by Keivan Farhadian with plans filed September 13, 2022 and permitted May 12, 2023. The second largest is a three-unit, 5,002 square-foot residential (R-2) building submitted by Nick Valentino with plans filed December 17, 2014 and permitted December 21, 2021.

The majority, or 58 percent of the 159,904 square feet of built space are walkup buildings, with mixed-use buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that Lane Capital Partners owned at least one commercial property with eight residential units in New York City with 23,400 square feet and a city-determined market value of $1.8 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single mixed-use property. It is located in Brooklyn.

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