BLDG Management pays $28M to Jeff Sutton for retail in Bensonhurst

Lloyd Goldman’s BLDG Management through the entity Bldg Mb Boston LLC paid $28 million to Jeff Sutton’s Wharton Properties through the entity 65-02 18th Avenue, L.L.C. for the retail building (K2) at 6502 18th Avenue in Bensonhurst, Brooklyn.
Sutton bought the building in January 1999.
The deal closed on May 8, 2023 and was recorded on May 11, 2023. The property has 26,000 square feet of built space and 10,713 square feet of additional air rights for a total buildable of 36,668 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,076 and the price per buildable square foot is $763 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 Jeff Sutton and Wharton Properties was Jeff Sutton. The signatory for BLDG Management was Lloyd Goldman.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer BLDG Management purchased 10 properties in two transactions for a total of $103.8 million and sold two properties in two transactions for a total of $12.2 million over the past 24 months.
The seller Jeff Sutton purchased two properties in two transactions for a total of $16.8 million and sold two properties in two transactions for a total of $7.4 million over the same time period.

The property

The retail building in Bensonhurst has 26,000 square feet of built space and 10,713 square feet of additional air rights for a total buildable of 36,668 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 151 feet deep with a total lot size of 15,090 square feet. The zoning is C4-2 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $5.9 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 received two DOB violations, $2,430 in ECB penalties, and $3,330 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 Bensonhurst, The bulk, or 34 percent of the 16.5 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Bensonhurst has near average sales volume among other neighborhoods with $310.6 million in sales volume in the last two years and is the 25th highest in Brooklyn. For development, Bensonhurst has had very little major development activity relative to other neighborhoods.It had 382,396 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the eight commercial properties representing 13,400 square feet of the 71,487 square feet. The identified owner is Anastasios Vasilakos.
There are no active new building construction projects on this tax block.

The majority, or 40 percent of the 71,487 square feet of built space are retail buildings, with walkup buildings next occupying 39 percent of the space.

The buyer

The PincusCo database currently indicates that BLDG Management owned at least 169 commercial properties with 3,885 residential units in New York City with 5,577,690 square feet and a city-determined market value of $1.6 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 58 percent of the 5,577,690 square feet of built space are elevator properties, with office properties next occupying 11 percent of the space. The bulk, or 77 percent of the built space, is in Manhattan, with Queens next at 12 percent of the space.

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