$15.5M industrial sale in East New York

The entity Georgia Realty, LLC paid $15.5 million to DCD Marketing through the entity Wortman Properties LLC for the industrial building (E1) at 73 Wortman Avenue in East New York, Brooklyn.
The deal closed on October 13, 2022 and was recorded on October 24, 2022. The property has 42,734 square feet of built space and 7,500 square feet of additional air rights for a total buildable of 50,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $362 and the price per buildable square foot is $310 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 September 25, 2007, for $4.5 million. The signatory for DCD Marketing was Mitchell Vilinsky. The signatory for the company that appears to be the buyer, Total Transportation Corp., was Agostino Vona, company CEO. Total Transportation was acquired by Ohio-based First Student Inc, according to a press release from May 2022.

David Junik and Nechama Liberow of Pinnacle Realty of NY represented the seller

Prior sales and revenue

The 42,734-square-foot property generated revenue of $476,755 or $11 per square foot, according to the most recent income and expense figures.

The property

The 73 Wortman Avenue parcel has frontage of 200 feet and is 250 feet deep with a total lot size of 50,000 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant 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 East New York, the bulk, or 40 percent of the 44.6 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has 2.2 times the average sales volume among other neighborhoods with $778.2 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, East New York has 3.4 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Brooklyn. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of one of the two commercial properties representing 89,586 square feet of the 132,320 square feet. The identified owner is CubeSmart.
There are no active new building construction projects on this tax block.

All properties are industrial.

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