Moshe Greenzweig buys 245 units in Brooklyn for $41.9M, adds to 500-plus-unit portfolio

Moshe Greenzweig bought a portfolio of four residential elevator buildings with a total of 245 residential units in Brooklyn from Peter Kraus for a total of $41.9 million, public records show.

The properties were a 96-unit residential elevator building at 3101 Aurelia Court in Flatlands, Brooklyn which was bought for $19.3 million, the midblock 54-unit residential elevator building at 550 East 21st Street in Flatbush which bought for $8.8 million, the midblock 60-unit residential elevator building at 855 East 19th Street in Flatbush bought for $8.5 million and the 35-unit residential elevator building at 850 East 17th Street in Flatbush bought for $5.3 million.

Greenzweig owns at least 13 walkup and elevators buildings in Brooklyn and Upper Manhattan, with a concentration of 11 in Flatbush. That 13-building portfolio has a total of 514 units, according to a PincusCo analysis of city records.

The new purchase closed on March 24, 2022 and was recorded on April 6, 2022.

Peter Kraus was the signatory on the deeds through Livingston Gardens, In.c and related entities. Moshe Greenzweig signed through the entity 3111 Court LLC and similarly named related entities.

The acquisition was financed with a $31.4 million loan from New York Community Bank which covers all four of the properties.

The 3101 Aurelia Court property has 114,120 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $169 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.)

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 3101 Aurelia Court.

Prior sales and revenue

The former owners of 3101 Aurelia Court according to the Department of Housing Preservation and Development includes Peter Kraus, head officer and Jose Soto, site manager. The business entities are Livingston Gardens Inc and Livingston Gardens Inc. The 114,120-square-foot property generated revenue of $1.7 million or $15 per square foot, according to the most recent income and expense figures.

The former owners of 550 East 21st Street according to the Department of Housing Preservation and Development includes Peter Kraus, head officer and Robert Malek, officer. The business entity is Kellner Gardens, Inc. The 48,500-square-foot property generated revenue of $768,779 or $16 per square foot, according to the most recent income and expense figures.

The former owners of 855 East 19th Street according to the Department of Housing Preservation and Development includes Peter Kraus, head officer and Robert Malek, officer. The business entity is Flatbush Builders Inc. The 76,860-square-foot property generated revenue of $811,632 or $11 per square foot, according to the most recent income and expense figures.

The former owners of 850 East 17th Street according to the Department of Housing Preservation and Development includes Peter Kraus, head officer and Robert Malek, officer. The business entity is East 17th Street Corp. The 42,000-square-foot property generated revenue of $488,082 or $12 per square foot, according to the most recent income and expense figures.

The property

The 3101 Aurelia Court parcel has frontage of 200 feet and is 165 feet deep with a total lot size of 33,000 square feet. 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 $4.2 million.

The 550 East 21st Street parcel has frontage of 150 feet and is 100 feet deep with a total lot size of 15,000 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.2 million.

The 855 East 19th Street parcel has frontage of 122 feet and is 120 feet deep with a total lot size of 14,700 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.6 million.

The 850 East 17th Street parcel has frontage of 80 feet and is 100 feet deep with a total lot size of 8,000 square feet. The zoning is R5B which allows for up to 1.35 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.5 million.

Violations and lawsuits

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have received three DOB violations, $5,000 in ECB penalties, 131 housing violations, and $5,150 in OATH penalties 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 Flatlands, the majority, or 65 percent of the 24.6 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 18 percent of the space. In sales, Flatlands has the 38th highest sale turnover among other neighborhoods in Brooklyn with $32.7 million in sales volume in the last two years. For development, Flatlands has had very little major development activity relative to other neighborhoods.It had 299,830 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

In Flatbush, the bulk, or 47 percent of the 51.8 million square feet of commercial built space are residential elevator buildings, with 1-4 family buildings next occupying 17 percent of the space. In sales, Flatbush has had very little sales volume relative to other neighborhoods with $208.8 million in sales volume in the last two years. For development, Flatbush has near average amount of major developments among other neighborhoods and is the 20th highest in Brooklyn. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.

The block

On the tax block of 3101 Aurelia Court, PincusCo has identified the owners of three of the five commercial properties representing 168,050 square feet of the 288,170 square feet. The two identified owners are Parkoff Organization and Bruman Realty. There is one active new building construction project totaling 130,855 square feet. It is a 171-unit, 130,855-square-foot R-2 building developed by Solomon Feder with plans filed July 6, 2020 and it has not been permitted yet.

The majority, or 98 percent of the 288,170 square feet of built space are residential elevator buildings, with mixed-use buildings next occupying 2 percent of the space.

Surrounding

Within a 400-foot radius of 3101 Aurelia Court, Pincusco identified seven commercial real estate items of interests occurred over the past 24 months.

Of those seven items, one was in new building development. It was a new building permit application filed on July 6, 2020 for a 130,855-square-foot R-2 building with 171 residential units at 1640 Flatbush Avenue. Of those seven items, one was for major renovation including a certificate of occupancy change. It was an initial temporary certificate of occupancy issued on June 22, 2020 for the $750,000 renovation of 13,627-square-foot B building with no residential units at 1623 Flatbush Avenue.

Of those seven items, two were sales above $5 million totaling $22.3 million. The most recent of the two was Maheshchand M. Ratanji which bought the vacant development site (V1) on Nostrand Avenue for $6.1 million from the Jackson Group on July 16, 2020.

Of those seven items, three were loans above $5 million totaling $83 million. The most recent of the three was Bruman Realty which borrowed $54 million from Bank Hapoalim secured by the 0-square-foot development site (V1) on 1640 Flatbush Avenue on December 30, 2021.

Direct link to Acris document. link

Share this article