ABS Partners Scores Rezoning for Sheepshead Bay Rentals

ABS Partners’ Randy Modell and Steven Hornstock’s bet on a rezoning in Sheepshead Bay is paying off.

A group led by Modell and Hornstock secured the final approvals from the city council to construct a nine-story building with 380 units and more than 43,600 square feet of commercial space at 2185 Coyle Street. About 95 units in the nine-story building will be designated as affordable.

The deal came about in an unusual way. Modell said about four years ago he was having his regular lunch meeting with his mentor Arnold Gumowitz of AAG Management, who mentioned he owned the South Brooklyn property. At the time, it was home to a grocery store, but had potential for a new mixed-use development through a rezoning.

But Gumowitz told Modell he had no interest in going through the lengthy Uniform Land Use Review Procedure process.

“He said ‘I’m not doing a rezoning when I’m 92 years old,’” said Modell.

Instead, Modell and Hornstock struck a deal with the nonagenarian. The ABS partners would sign a 10-year lease and carry the costs of the soon to be vacant property. In the end, Modell and Hornstock’s group would have the option to purchase the property from Gumowitz.

The deal, however, only worked if the rezoning was approved. If not, Modell and Hornstock were stuck with a vacant property.

The team enlisted land use attorney Richard Bass of Akerman for the rezoning. Bass secured the support of the community board and city councilmember Mercedes Narcisse.

Unlike other rezoning projects across New York City, Bass obtained community support with minimal pushback. The owners added more two- and three-bedroom apartments based on feedback from the city planning commission. The number of units scaled down from 435 to 380. The group is also planning to sign a lease with a supermarket, which was another request by the community.

“The earlier you can engage the host community it usually results in a good solution,” said Bass.

Dealmaking in the low-slung Sheepshead Bay neighborhood has picked up in recent years. In late 2023, Marvin Azrak’s Maguire Capital bought 49 unsold condominium units at Chaim Miller’s former condo project at 3144 Emmons Avenue. Last year, Slate paid $24.3 million to buy a development site at 2114-2134 Coyle Street from Marty Waisbrod. Slate is planning to develop a 125,000-square-foot, seven-story building on the site, according to the New York Business Journal.