ABJ Properties pays $5.2M to Kupfermans for 9-unit walkup in South Slope

ABJ Properties through the entity 331 Holdings LLC paid $5.2 million to Scott Kupferman and Neil Kupferman through the entity Sansue Realty Associates, LLC for the nine-unit residential walkup building at 515 6th Avenue in South Slope, Brooklyn.
The deal closed on March 29, 2022 and was recorded on April 13, 2022.

The property has 8,484 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $607 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 Scott Kupferman and Neil Kupferman was Neil Kupferman. The signatory for ABJ Properties was Ben Soleimani. Ben Soleimani is the owner of ABJ Properties. Scott Kupferman and Neil Kupferman signed on a previous mortgage for the property.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer ABJ Properties purchased 16 properties in three transactions for a total of $26.9 million and has no record it sold any properties over the past 24 months.
The seller Scott Kupferman had not purchased any other properties and sold two properties in two transactions for a total of $7.6 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Scott Kupferman, head officer and Marcos Taveras, officer. The business entity is Sansue Realty Assoc Llc.

The property

The 515 6th Avenue parcel has frontage of 24 feet and is 97 feet deep with a total lot size of 2,397 square feet. 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 $2.4 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received three housing violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In South Slope, the bulk, or 42 percent of the 9.4 million square feet of commercial built space are 1-4 family buildings, with residential walkup buildings next occupying 23 percent of the space. In sales, South Slope has 1.2 times the average sales volume among other neighborhoods with $322.9 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, South Slope has had very little major development activity relative to other neighborhoods.It had 91,369 square feet of commercial and multi-family construction under development in the last two years, which represents 0.98 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of four of the 20 commercial properties representing 24,956 square feet of the 104,243 square feet. The largest owner is Greenbrook Partners, followed by Jonathan Holman and then Amihai Ulman. There are two active new building construction projects totaling 9,468 square feet. The largest is a three-unit, 4,958-square-foot R-2 building developed by Susan Miller with plans filed September 21, 2015 and it has not been permitted yet. The second largest is a four-unit, 4,510-square-foot R-2 building developed by Artem Golynkin with plans filed September 8, 2020 and it has not been permitted yet.

The majority, or 42 percent of the 208,463 square feet of built space are residential walkup buildings, with 1-4 family buildings next occupying 37 percent of the space.

The seller

The PincusCo database currently indicates that Scott Kupferman owned at least two commercial properties with 10,652 square feet and a city-determined market value of $3.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are residential walkup properties. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that ABJ Properties owned at least 52 commercial properties with 664,398 square feet and a city-determined market value of $60.2 million. (Market value is typically about 50% of actual value.) The portfolio has $17 million in debt, borrowed from Investors Bank and Berkadia Commercial Mortgage. Within the portfolio, the bulk, or 86 percent of the 664,398 square feet of built space are residential walkup properties, with residential elevator properties next occupying 13 percent of the space. The bulk, or 52 percent of the built space, is in Bronx, with Manhattan next at 30 percent of the space.

Surrounding

Within a 400-foot radius of 515 6th Avenue, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, two were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $589,700 and one permit with a total initial cost of $272,300. The most recent of these two items was the filing on August 24, 2021 for a 4,360-square-foot R-2 building with four residential units at 328 12th Street.
One of those three items was a loan which American Development Group borrowed $16.7 million from Rompsen secured by the 14,000-square-foot, four-unit four-family building (C3) on 333 14th Street and one other property on September 2, 2021.

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