Bruman Realty pays $1.5M to Getty Realty Corp. for potential dev site in Bath Beach

Bruman Realty through the entity 86th Street Owner LLC paid $1.5 million to Getty Realty Corp. through the entity Leemilt’S Petroleum, Inc. for the corner parcel that is a potential development site occupied by an industrial building at 1672 86th Street in Bath Beach, Brooklyn.
The deal closed on June 9, 2022 and was recorded on June 28, 2022. The property has 5,347 square feet of built space and 10,891 square feet of additional air rights for a total buildable of 16,207 square feet according to PincusCo analysis of city data. The sale price per built square foot is $280 and the price per buildable square foot is $92 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 Getty Realty Corp. was Joshua Dicker. The signatory for Bruman Realty was Joseph Brunner. Bruman Realty obtained a mortgage for the entire $1.05 million purchase price.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Bruman Realty purchased one properties in one transactions for a total of $14.4 million and sold 15 properties in eight transactions for a total of $475.7 million over the past 24 months.
The seller Getty Realty Corp. had not purchased any other properties and sold three properties in two transactions for a total of $4.9 million over the same time period.

The property

The 1672 86th Street parcel has frontage of 86 feet and is 140 feet deep with a total lot size of 12,966 square feet. The lot is irregular. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $100 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 $5 million on this tax lot.

The neighborhood

In Bath Beach, the majority, or 52 percent of the 14 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 16 percent of the space. In sales, Bath Beach has had very little sales volume relative to other neighborhoods with $52.1 million in sales volume in the last two years. For development, Bath Beach has had very little major development activity relative to other neighborhoods.It had 87,850 square feet of commercial and multi-family construction under development in the last two years, which represents 0.63 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 19 commercial properties representing 7,416 square feet of the 67,549 square feet. The two identified owners are Salvatore Ferlisi and Giovanni Bertuna. There are no active new building construction projects on this tax block.

The majority, or 58 percent of the 160,652 square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 27 percent of the space.

The buyer

The PincusCo database currently indicates that Bruman Realty owned at least 14 commercial properties with 334,185 square feet and a city-determined market value of $47.4 million. (Market value is typically about 50% of actual value.) The portfolio has $477.4 million in debt, with top three lenders as Starwood Capital Group, Slate Property Group, and Bank Hapoalim respectively. Within the portfolio, the bulk, or 39 percent of the 334,185 square feet of built space are N3 properties, with industrial properties next occupying 24 percent of the space. The bulk, or 65 percent of the built space, is in Brooklyn, with Queens next at 24 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 1672 86th Street that occurred over the past 24 months.

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