Brooklyn Friends School pays $19.2M for office in Downtown Brooklyn

Brooklyn Friends School paid $19.2 million to Aleksandr Shchegol through the entity New York Commercial Realty LLC for the office building (O5) at 383 Pearl Street in Downtown Brooklyn, Brooklyn.
The deal closed on February 28, 2024 and was recorded on February 29, 2024. The property has 27,275 square feet of built space and 29,665 square feet of additional air rights for a total buildable of 56,940 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $705 and the price per buildable square foot is $338 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 Aleksandr Shchegol was Aleksanndr Shchegol. The contract date was February 28, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Brooklyn Friends School purchased one property in one transaction for a total of $4.5 million and has no record it sold any properties over the past 24 months.
The seller Aleksandr Shchegol had not purchased any other properties and had not sold any properties over the same time period.

The property

The office building in Downtown Brooklyn has 27,275 square feet of built space and 29,665 square feet of additional air rights for a total buildable of 56,940 square feet according to a PincusCo analysis of city data. The parcel has frontage of 48 feet and is 100 feet deep with a total lot size of 5,694 square feet. The lot is irregular. The zoning is C5-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.9 million. The most recent loan totaled $6 million and was provided by City National Bank of Florida on October 29, 2021.

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 $600 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 Downtown Brooklyn, The bulk, or 40 percent of the 22.4 million square feet of commercial built space are office buildings, with elevator buildings next occupying 24 percent of the space. In sales, Downtown Brooklyn has 3.5 times the average sales volume among other neighborhoods with $1 billion in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Downtown Brooklyn has 2.6 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Brooklyn. It had 2.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the six commercial properties representing 760,532 square feet of the 908,762 square feet. The largest owner is New York University, followed by Muss Development and then Brooklyn Friends School.
There are no active new building construction projects on this tax block.

The majority, or 73 percent of the 908,762 square feet of built space are specialty buildings, with hotel buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Aleksandr Shchegol owned at least one commercial property in New York City with 27,275 square feet and a city-determined market value of $3.9 million. (Market value is typically about 50% of actual value.) The portfolio has $6 million in debt, borrowed from City National Bank of Florida. The portfolio consists of at least a single office property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Brooklyn Friends School owned at least two commercial properties with three residential units in New York City with 78,870 square feet and a city-determined market value of $11.8 million. (Market value is typically about 50% of actual value.) The portfolio has $14 million in debt, borrowed from TD Bank. Within the portfolio, the bulk, or 97 percent of the 78,870 square feet of built space are specialty properties, with C0 properties next occupying 3 percent of the space. They are all located in Brooklyn.

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