Allied Properties acquires $15.6M Bay Ridge office building through bankruptcy

Tim Ziss’s Allied Properties through the entity 9201 LLC acquired the office building (O6) at 9201 4th Avenue in Bay Ridge, Brooklyn after the former owner filed bankruptcy to hold off a foreclosure process. The transfer value was $15.6 million. The former owners included Demetrios Spiropoulos through the entity SPL Partners LLC.

Madison Realty Capital provided an $11.9 million loan to finance the acquisition.
Constantine Spiropoulos’s SPL Associates purchased the property in 1988. In 2006 the name was changed to SPL Partners.

The sale is through a bankruptcy proceeding for case 21-42248. The note holder, Tim Ziss of Allied Properties in May 2021 filed a pre-foreclosure action related to a $16.4 million defaulted loan, 512538/2021.

The Real Deal reported in April 2023 that Allied Properties would take control of the property using a credit bid of $25.1 million, which was the total due on the defaulted loan. The bankruptcy auction was led by Greg Corbin of Northgate Real Estate Group.
The deal closed on September 15, 2023 and was recorded on November 14, 2023. The property has 79,173 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $196 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 May 3, 2017, for $3 million. The signatory for Demetrios Spiropoulos was Demetrios Spiropoulos. The signatory for Allied Properties was Tim Ziss, who also is known by Efthimios Zisimopoulos. The contract date was September 15, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Allied Properties had purchased any other properties and sold one property in one transactions for a total of $13.6 million over the past 24 months.
The seller Demetrios Spiropoulos had not purchased any other properties and had not sold any properties over the same time period.

The property

The office building in Bay Ridge has 79,173 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 105 feet and is 192 feet deep with a total lot size of 18,008 square feet. The lot is irregular. The zoning is C8-2 which allows for up to 2 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $12.7 million. The most recent loan totaled 0.0 and was provided by Allied Partners on April 19, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received two DOB violations and $7,200 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 $1 million on this tax lot.

The neighborhood

In Bay Ridge, The bulk, or 30 percent of the 21 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Bay Ridge has 1.5 times the average sales volume among other neighborhoods with $551.8 million in sales volume in the last two years and is the 12th highest in Brooklyn. For development, Bay Ridge has had very little major development activity relative to other neighborhoods.It had 273,394 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the 11 commercial properties representing 79,173 square feet of the 127,296 square feet. The identified owner is Spl Partners.
There are no active new building construction projects on this tax block.

The majority, or 69 percent of the 127,296 square feet of built space are office buildings, with retail buildings next occupying 14 percent of the space.

The buyer

The PincusCo database currently indicates that Allied Properties owned at least one commercial property in New York City with 38,621 square feet and a city-determined market value of $3 million. (Market value is typically about 50% of actual value.) The portfolio has $10.5 million in debt, borrowed from Dime Community Bank. The portfolio consists of at least a single office property. It is located in Brooklyn.

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