Albert Rabizadeh of Global Asset pays $22.8M to Vanbarton for block-long retail in Longwood

Albert Rabizadeh of Global Asset Properties through the entity 1031 Westchester Ave LLC paid $22.8 million to Vanbarton Group through the entity Eib Westchester I LLC for retail building (K1) at 1031-1049 Westchester Avenue in Longwood, Bronx and retail building (O5) at 1057 Southern Boulevard in Longwood, Bronx. The two parcels cover the entire 246-foot-long block front from Southern Boulevard to Simpson Street.
The deal closed on July 13, 2022 and was recorded on July 21, 2022.The two properties have 23,339 square feet of built space and 35,828 square feet of additional air rights for a total buildable of 59,154 square feet according to PincusCo analysis of city data. The sale price per built square foot is $974 and the price per buildable square foot is $384 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 signatory for Vanbarton Group was Justin B. Kleinman. The signatory for Albert Rabizadeh was Albert Rabizadeh. Justin B. Kleinman is the principal and CEO of the Vanbarton Group. Albert Rabizadeh is an executive with Global Asset Properties.

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 1031-1049 Westchester Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Albert Rabizadeh had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Vanbarton Group purchased 10 properties in two transactions for a total of $234.5 million and sold six properties in three transactions for a total of $36.8 million over the same time period. The two properties with a total of 23,339 square feet of built space generated revenue of $1.9 million per year or $82 per square foot. The sale price per square foot was $975.

The property

The 1031-1049 Westchester Avenue parcel has frontage of 182 feet and is 121 feet deep with a total lot size of 13,150 square feet. The lot is irregular. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $5.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $1,475 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 Longwood, the bulk, or 44 percent of the 22 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 27 percent of the space. In sales, Longwood has had very little sales volume relative to other neighborhoods with $215.2 million in sales volume in the last two years. For development, Longwood has near average amount of major developments among other neighborhoods and is the 9th highest in Bronx. It had 997,097 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On the tax block of 1031-1049 Westchester Avenue, PincusCo has identified the owners of two of the nine commercial properties representing 22,962 square feet of the 182,721 square feet. The two identified owners are New York Police Department and Urban Health Plan. There is one active new building construction project totaling 47,981 square feet. It is a 47,981-square-foot B building developed by Lewis Spann with plans filed August 2, 2017 and it has not been permitted yet.

The majority, or 63 percent of the 182,721 square feet of built space are specialty buildings, with retail buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that Vanbarton Group owned at least 52 commercial properties in New York City with 2,905,618 square feet and a city-determined market value of $979.6 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as Blackstone Group, Blackstone Mortgage Trust, and Canadian Imperial Bank of Commerce respectively. Within the portfolio, the bulk, or 77 percent of the 2,905,618 square feet of built space are office properties, with elevator properties next occupying 13 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Albert Rabizadeh owned at least 19 commercial properties in New York City with 50,681 square feet and a city-determined market value of $20.4 million. (Market value is typically about 50% of actual value.) The portfolio has $20.3 million in debt, with top three lenders as Flushing Bank, Columbia Capital, and SKW Funding respectively. Within the portfolio, the bulk, or 35 percent of the 50,681 square feet of built space are industrial properties, with retail properties next occupying 34 percent of the space. The bulk, or 49 percent of the built space, is in Brooklyn, with Bronx next at 20 percent of the space.

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