Reuven Salman pays $6M for 57-unit Sunset Park walkup via bankruptcy

December 31, 2024

Reuven Salman off Salman Capital, through the entity 4112 4th Ave Realty LLC paid $6 million through a bankruptcy for the 57-unit residential walkup building (C7) at 4112 4th Avenue in Sunset Park, Brooklyn. The expected use is cash flowing. The former owner was Ira Epstein through the entity 4112 Realty LLC, who lost it in the bankruptcy process. The deal closed on December 9, 2024 and was recorded on December 30, 2024. The property has 43,280 square feet of built space and 4,806 square feet of additional air rights for a total buildable of 48,068 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $138 and the price per buildable square foot is $125 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 July 24, 2012, for $8 million. The signatory for Ira Epstein was Jonathan Pasternak, an attorney. The signatory for Reuven Salman was Reuven 1/3Salman. The contract date was December 9, 2024. Greg Corbin of Northgate Real Estate Group led a team that marketed the property, and conducted the auction and sale through a Chapter 11 bankruptcy process.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Reuven Salman had purchased any other properties and has no record it sold any properties over the past 24 months. The seller Ira Epstein had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Ira Epstein, head officer and Edwin Morales, officer. The business entity is 4112 Realty Llc.

The property

The residential walkup building with 57 residential units in Sunset Park has 43,280 square feet of built space and 4,806 square feet of additional air rights for a total buildable of 48,068 square feet according to a PincusCo analysis of city data. The parcel has frontage of 120 feet and is 100 feet deep with a total lot size of 12,017 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 $4.8 million. The property has 57 rent regulated units according to city tax records from 2023.

Violations and lawsuits

The property was involved in one lawsuit and one bankruptcy over the past two years. The suit was a $10 million commercial foreclosure concerning a loan filed on January 11, 2023, by Valley National Bank against Ira J. Epstein. The bankruptcy was filed on August 3, 2023, by Ira Joseph Epstein citing assets of $10 million. In addition, according to city public data, the property has received two DOB violations, 94 housing violations, $1,830 in OATH penalties, and one housing litigation 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 block

On this tax block, PincusCo has identified the owners of five of the nine commercial properties representing 56,703 square feet of the 109,715 square feet. The largest owner is Alessandro Pirozzi, followed by Hudson Companies and then Sugar Hill Capital Partners. 2/3There are no active new building construction projects on this tax block. The majority, or 94 percent of the 109,715 square feet of built space are walkup buildings, with industrial buildings next occupying 4 percent of the space.

The seller

The PincusCo database currently indicates that Ira Epstein owned at least one commercial property with 47 residential units in New York City with 46,200 square feet and a city determined market value of $4 million. (Market value is typically about 50% of actual value.) The portfolio has $8.8 million in debt, borrowed from Peapack-Gladstone Bank. The portfolio consists of at least a single elevator property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Reuven Salman owned at least one commercial property in New York City with 12,596 square feet and a city-determined market value of $2.1 million. (Market value is typically about 50% of actual value.) The portfolio has $6 million in debt, borrowed from Investors Bank. The portfolio consists of at least a single retail property. It is located in Brooklyn.