Beethoven Pianos sells industrial in Mott Haven for $7.1M, second sale in two years

The entity 2403 Third Ave Operating LLC paid $7.1 million to Beethoven Pianos through the entity Kai Development Corp. for the industrial building (E1) at 2403 3rd Avenue in Mott Haven, Bronx.
The deal closed on March 6, 2023 and was recorded on April 10, 2023. The property has 38,850 square feet of built space and 12,901 square feet of additional air rights for a total buildable of 51,778 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $182 and the price per buildable square foot is $137 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 Beethoven Pianos was Kai Demler.

Prior sales and revenue

The seller Beethoven Pianos has not purchased any other properties and sold one property in one transaction for a total of $6.5 million over the past 24 months, the 10-unit rental at 48 Bedford Street in the West Village for $6.5 million. The 38,850-square-foot property in Mott Haven generated revenue of $524,331 or $13 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Mott Haven has 38,850 square feet of built space and 12,901 square feet of additional air rights for a total buildable of 51,778 square feet according to a PincusCo analysis of city data. The parcel has frontage of 46 feet and is 187 feet deep with a total lot size of 8,601 square feet. The lot is irregular. The zoning is M1-3/R8 which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 6.02 times FAR for residential. The city-designated market value for the property in 2022 is $2.8 million.

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 not received any significant violations in the last year.

The neighborhood

In Mott Haven, The bulk, or 45 percent of the 41.7 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 23 percent of the space. In sales, Mott Haven has 2.3 times the average sales volume among other neighborhoods with $808.6 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven has 3.2 times the average amount of major developments relative to other neighborhoods and is the highest in Bronx. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 13 commercial properties representing 1,292,938 square feet of the 1,440,409 square feet. The largest owner is Zar Group, followed by RXR Realty and then Cubesmart.
On the tax block, there were five new building construction projects totaling 1,372,422 square feet. The largest is a 458-unit, 364,274 square-foot residential (R-2) building submitted by Brookfield Properties and filed by Dan Berger with plans filed September 3, 2015 and permitted April 1, 2019. The second largest is a 213-unit, 315,859 square-foot residential (R-2) building submitted by Chess Builders and Cheskel Schwimmer and filed by Cheskel Schwimmer with plans filed February 20, 2019.

The majority, or 69 percent of the 1.4 million square feet of built space are elevator buildings, with industrial buildings next occupying 18 percent of the space.

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