Alessandro Pirozzi pays $5.2M to Norman Rappaport for two walkups in Sunset Park

Alessandro Pirozzi through the entity Martan Properties LLC paid $5.2 million to Norman Rappaport through the entity Rap 4th Avenue LLC for the 21-unit residential walkup building at 5422 4th Avenue in Sunset Park, Brooklyn and midblock 16-unit residential walkup building at 5416 4th Avenue in Sunset Park, Brooklyn.
The deal closed on June 16, 2022 and was recorded on June 29, 2022. The two properties have 33,057 square feet of built space and 4,994 square feet of additional air rights for a total buildable of 38,064 square feet according to PincusCo analysis of city data. The sale price per built square foot is $157 and the price per buildable square foot is $136 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 Norman Rappaport was Gary Kreinik. The signatory for Alessandro Pirozzi was Alessandro Pirozzi.

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 5422 4th Avenue.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Alessandro Pirozzi had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Norman Rappaport had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Norm Rapps, head officer. The business entity is Rap 4th Avenue Llc. The two properties with a total of 33,057 square feet of built space generated revenue of $478,348 per year or $14 per square foot. The sale price per square foot was $157.

The property

The 5422 4th Avenue parcel has frontage of 50 feet and is 95 feet deep with a total lot size of 4,766 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 $1.1 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 69 housing violations and $200 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 Sunset Park, the bulk, or 28 percent of the 49.6 million square feet of commercial built space are 1-4 family buildings, with industrial buildings next occupying 21 percent of the space. In sales, Sunset Park has 1.8 times the average sales volume among other neighborhoods with $500.6 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.It had 751,643 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block of 5422 4th Avenue, PincusCo has identified the owners of two of the 11 commercial properties representing 33,057 square feet of the 94,764 square feet. The identified owner is Norman P. Rappaport. There are no active new building construction projects on this tax block.

The majority, or 39 percent of the 190,218 square feet of built space are residential walkup buildings, with 1-4 family buildings next occupying 39 percent of the space.

The buyer

The PincusCo database currently indicates that Alessandro Pirozzi owned at least 11 commercial properties with 140,064 square feet and a city-determined market value of $17.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 78 percent of the 140,064 square feet of built space are walkup properties, with C6 properties next occupying 22 percent of the space. They are all located in Brooklyn.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 5422 4th Avenue that occurred over the past 24 months.

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