Avdoo & Partners pays $20.1M to Hidrock for retail in Boerum Hill

Avdoo & Partners Development through the entity Cobble Hill Owner LLC paid $20.1 million to Hidrock Properties through the entity 110 Bp Property LLC for the retail building (K2) at 110 Boerum Place in Boerum Hill, Brooklyn and retail building (K2) at 96 Boerum Place in Boerum Hill, Brooklyn. These properties were badly damaged in a fire in March 2022. PincusCo reported in February 2023 that Avdoo & Partners was in contract to buy the properties.
The sale closed on July 25, 2023 and was recorded on July 31, 2023. The two properties have 34,880 square feet of built space and 3,200 square feet of additional air rights for a total buildable of 38,078 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $576 and the price per buildable square foot is $527 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 Hidrock Properties was Abraham J. Hidary. The signatory for Avdoo & Partners Development was Shlomo Avdoo. The contract date was February 23, 2023.

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 110 Boerum Place.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Avdoo & Partners Development purchased six properties in three transactions for a total of $44.4 million and sold one property in one transaction for a total of $13.1 million over the past 24 months.
The seller Hidrock Properties had not purchased any other properties and sold 23 properties in 17 transactions for a total of $79.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Abraham Hidary, head officer and Ezra Kassin, site manager. The business entities are Strivers Management Group Corp. and 110 Boerum Place. The two properties with a total of 34,880 square feet of built space generated revenue of $2.2 million per year or $64 per square foot. The sale price per square foot was $576.

The property

The retail building in Boerum Hill has 34,880 square feet of built space and 3,200 square feet of additional air rights for a total buildable of 38,078 square feet according to a PincusCo analysis of city data. The parcel has frontage of 136 feet and is 100 feet deep with a total lot size of 14,239 square feet. The lot is irregular. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $9.4 million. The most recent loan totaled $18.3 million and was provided by Signature Bank on December 16, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received three DOB violations and $450 in OATH penalties in the last year.

Development

For the tax lot buildings, two out of the two buildings received a initial certificate of occupancy in the last ten years. 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 Boerum Hill, The bulk, or 32 percent of the 9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 16 percent of the space. In sales, Boerum Hill has near average sales volume among other neighborhoods with $343.2 million in sales volume in the last two years and is the 25th highest in Brooklyn. For development, Boerum Hill has near average amount of major developments among other neighborhoods and is the 15th highest in Brooklyn. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On the tax block of 110 Boerum Place, PincusCo has identified the owners of 10 of the 16 commercial properties representing 90,085 square feet of the 125,990 square feet. The largest owner is Paul S. Sayegh Trust Of Paul S Sayegh, followed by Matthew Rashid and then Madeline Trezza.
There are no active new building construction projects on this tax block.

The majority, or 32 percent of the 125,990 square feet of built space are mixed-use buildings, with retail buildings next occupying 28 percent of the space.

The seller

The PincusCo database currently indicates that Hidrock Properties owned at least four commercial properties with 42 residential units in New York City with 53,490 square feet and a city-determined market value of $12.1 million. (Market value is typically about 50% of actual value.) The portfolio has $74.2 million in debt, with top three lenders as Citizens Bank, Emerald Creek Capital, and Popular Bank respectively. Within the portfolio, the bulk, or 80 percent of the 53,490 square feet of built space are elevator properties, with mixed-use properties next occupying 20 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Avdoo & Partners Development owned at least 10 commercial properties with 55 residential units in New York City with 104,124 square feet and a city-determined market value of $24 million. (Market value is typically about 50% of actual value.) The portfolio has $47.7 million in debt, with top three lenders as Bank Leumi, Kearny Bank, and First Republic Bank respectively. Within the portfolio, the bulk, or 33 percent of the 104,124 square feet of built space are retail properties, with elevator properties next occupying 33 percent of the space. They are all located in Brooklyn.

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