Beitel Group pays $4M for industrial in Borough Park

Beitel Group through the entity 1555 60th Street LLC paid $4 million to William Nussen through the entity 1547-55 60th St LLC for the industrial building (G2) at 1547-1555 60th Street in Borough Park, Brooklyn.
The deal closed on May 16, 2023 and was recorded on May 22, 2023. The property has 8,000 square feet of built space and 24,036 square feet of additional air rights for a total buildable of 32,048 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $500 and the price per buildable square foot is $124 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 March 22, 2013, for $1.5 million. The signatory for William Nussen was William Nussen. The signatory for Beitel Group was Ben Beitel.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Beitel Group purchased three properties in three transactions for a total of $64.8 million and sold one property in one transaction for a total of $2.8 million over the past 24 months.
The seller William Nussen had not purchased any other properties and had not sold any properties over the same time period. The 8,000-square-foot property generated revenue of $128,548 or $16 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Borough Park has 8,000 square feet of built space and 24,036 square feet of additional air rights for a total buildable of 32,048 square feet according to a PincusCo analysis of city data. The parcel has frontage of 80 feet and is 100 feet deep with a total lot size of 8,012 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 $652,000.

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.

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 Borough Park, The bulk, or 25 percent of the 23.2 million square feet of commercial built space are specialty buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Borough Park has 1.2 times the average sales volume among other neighborhoods with $413.1 million in sales volume in the last two years and is the 17th highest in Brooklyn. For development, Borough Park has had very little major development activity relative to other neighborhoods.It had 807,686 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 10 commercial properties representing 10,868 square feet of the 72,109 square feet. The two identified owners are William Nussen and Joshua Dembitzer.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 72,109 square feet of built space are industrial buildings, with mixed-use buildings next occupying 29 percent of the space.

The seller

The PincusCo database currently indicates that William Nussen owned at least one commercial property in New York City with 8,220 square feet and a city-determined market value of $683,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Beitel Group owned at least nine commercial properties with 112 residential units in New York City with 320,687 square feet and a city-determined market value of $33.9 million. (Market value is typically about 50% of actual value.) The portfolio has $159.2 million in debt, with top three lenders as MF1 Capital, BridgeCity Capital, and Cerco Funding respectively. Within the portfolio, the bulk, or 34 percent of the 320,687 square feet of built space are industrial properties, with elevator properties next occupying 34 percent of the space. The bulk, or 60 percent of the built space, is in Brooklyn, with Bronx next at 40 percent of the space.

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