Mike Kohn’s Alliance Private Capital Group has sold an old commercial laundry building in Brooklyn to a group of three Satmar Hasidim for $60 million, according to a report in Crain’s. Kohn has more than doubled the $27 million that he paid for the site last year.
The new owners have been identified as a partnership between Nachman Leibowitz, Fishel Deitch and Avrumi Brach.
The location’s value went up so much to new zoning laws that increased the size of a possible development there from 250, 000 to as much as 450, 000 square feet of residential space. The new owners can also add 100, 000 square feet of retail space.
Crain’s sites sources as saying that the investors are looking to build a new residential complex for their fellow Satmar Hasidim whose community is bursting at the seams due to its large families. Alliance is known for investing in and flipping properties and not the development of new buildings.
The building is located at 835 Myrtle Avenue at the corner Marcy Avenuein the Bedford Stuyvesant neighborhood, near the south Williamsburg neighborhood where there is a large Satmar community. The Hasidic sect has been expanding into Bedford Stuyvesant lately.
Built at the turn of the 20th century, the five story red brick building was once home to the Cascade linen company. That business was founded by a Ukrainian Jewish immigrant named Charles A. Bonoff.
Alliance Private Capital Group LLC is a national commercial real estate capital intermediary firm that was formed in 2004. Since its inception, the firm has originated and closed in excess of $3.5 Billion of commercial real estate financing throughout the U.S. and Canada.