ASG Equities pays $14.8M to Smith Family for mixed-use in Bay Ridge
ASG Equities through the entity 472 86 Blue Property LLC paid $14.8 million to Julian and Sharon Smith Family LP for the midblock mixed-use building at 472 86th Street in Bay Ridge, Brooklyn.
The deal closed on April 8, 2022 and was recorded on April 25, 2022.
The property has 19,800 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $744 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 Julian and Sharon Smith Family LP was Sharon Smith. The signatory for ASG Equities was Al Gindi. Crains was the first to report the purchase, which completes ASG Equities’ acquisition of an entire lot where the original Century 21 store was.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer ASG Equities purchased one properties in one transactions for a total of $3 million and sold four properties in one transactions for a total of $6.2 million over the past 24 months.
The seller Julian and Sharon Smith Family LP had not purchased any other properties and had not sold any properties over the same time period. The 19,800-square-foot property generated revenue of $1 million or $53 per square foot, according to the most recent income and expense figures.
The 472 86th Street parcel has frontage of 19 feet and is 200 feet deep with a total lot size of 6,592 square feet. The lot is irregular. The zoning is C4-2A which allows for up to 3 times floor area ratio (FAR) for commercial and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.1 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.
There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.
In Bay Ridge, the bulk, or 36 percent of the 46.1 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 28 percent of the space. In sales, Bay Ridge has near average sales volume among other neighborhoods with $236.6 million in sales volume in the last two years and is the 15th highest in Brooklyn. For development, Bay Ridge has had very little major development activity relative to other neighborhoods.It had 237,293 square feet of commercial and multi-family construction under development in the last two years, which represents 0.51 percent of the neighborhood’s built space.
On this tax block, PincusCo has identified the owners of four of the 44 commercial properties representing 25,920 square feet of the 274,227 square feet. The largest owner is Century 21 Inc., followed by ASG Equities and then Vitangelo Parente. There are no active new building construction projects on this tax block.
The majority, or 77 percent of the 274,227 square feet of built space are mixed-use buildings, with retail buildings next occupying 16 percent of the space.
Within a 400-foot radius of 472 86th Street, PincusCo identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, five were for major renovation including a certificate of occupancy change. They were three permit applications with a total initial cost of $3.8 million, one permit with a total initial cost of $1,000,000 and one initial temporary certificate of occupancy issuance for a project that initially costed $650,000. The most recent of these five items was the filing on November 22, 2021 for a 14,927-square-foot B building with zero residential units at 8715 5th Avenue.
One of those nine items was a sale which Century 21 Inc. bought the 12,000-square-foot, one-unit retail building (K3) on 460 86th Street for $9.5 million from Aldrich Stores on November 30, 2020.
Of those nine items, three were loans above $5 million totaling $26.8 million. The most recent of the three was Efthimios Zisimopoulos which borrowed $10 million from Dime Community Bank secured by the 20,200-square-foot, two-unit mixed-use building (K4) on 437 88th Street on January 13, 2022.
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