Bruman Realty pays $3.5M to Getty Realty after completing 61-unit project in Gravesend, gets $27.5M loan

Joseph Brunner’s Bruman Realty through the entity 125 Kings LLC paid $3.5 million to Getty Realty Corp. through the entity Leemilt’s Petroleum, Inc. for the property at 125 Kings Highway in Gravesend, Brooklyn, where Bruman recently received a certificate of occupancy for a 61-unit project.

At the same time, Webster Bank provided Bruman Realty a $27.5 million take out loan following construction of the property.
The deal closed on October 7, 2022 and was recorded on October 14, 2022. The property has 42,030 square feet of built space.
The signatory for Getty Realty Corp. was Christopher J. Constant. The signatory for Bruman Realty was Joseph Brunner. Brunner signed a lease for the parcel in March 2020 valued at $5.67 million, then filed building plans for the 61-unit project in August 2020. The building was issued a certificate of occupancy in September 2022. With this transaction, Bruman Realty has acquired the fee.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Bruman Realty purchased two properties in two transactions for a total of $15.9 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 four properties in three transactions for a total of $6.4 million over the same time period.

The property

The 125 Kings Highway parcel has frontage of 105 feet and is 92 feet deep with a total lot size of 9,816 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 $392,000. The most recent loan totaled $16.8 million and was provided by Investors Bank on September 10, 2021.

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 $625 in ECB 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 Gravesend, the bulk, or 39 percent of the 18.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Gravesend has had very little sales volume relative to other neighborhoods with $270.1 million in sales volume in the last two years. For development, Gravesend has 1.2 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Brooklyn. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the six commercial properties representing zero square feet of the 143,050 square feet. The identified owner is Bruman Realty.
On the tax block, there were two new building construction projects totaling 56,687 square feet. The largest is a 35-unit, 40,715-square-foot R-2 building developed by Pietro Giove with plans filed February 15, 2022 and it has not been permitted yet. The second largest is a 16-unit, 15,972-square-foot R-2 building developed by Sai Truong with plans filed January 4, 2019 and it has not been permitted yet.

The buyer

The PincusCo database currently indicates that Bruman Realty owned at least 15 commercial properties in New York City with 339,532 square feet and a city-determined market value of $50.4 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 38 percent of the 339,532 square feet of built space are N3 properties, with industrial properties next occupying 25 percent of the space. The bulk, or 65 percent of the built space, is in Brooklyn, with Queens next at 23 percent of the space.

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