Bryan Sarfati pays $2.1M for corner mixed-use in Sheepshead Bay

Bryan Sarfati through the entity 2423 Avenue U Realty LLC paid $2.1 million to Hockuen Fung for the two-unit mixed-use building (K4) at 2423 Avenue U in Sheepshead Bay, Brooklyn, at the corner of Bedford Avenue.
The deal closed on March 20, 2023 and was recorded on March 27, 2023. The property has 3,360 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $639 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 April 11, 2013, for $1.5 million. The signatory for Hockuen Fung was Hockuen Fung. The signatory for Bryan Sarfati was Bryan Sarfati.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Bryan Sarfati had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Hockuen Fung had not purchased any other properties and had not sold any properties over the same time period. The 3,360-square-foot property generated revenue of $110,628 or $33 per square foot, according to the most recent income and expense figures.

The property

The 2423 Avenue U parcel has frontage of 21 feet and is 100 feet deep with a total lot size of 2,100 square feet. The zoning is R4 which allows for up to 0.75 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $491,000.

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 $2,500 in ECB penalties and $2,550 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 Sheepshead Bay, the bulk, or 44 percent of the 26.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Sheepshead Bay has 1.5 times the average sales volume among other neighborhoods with $531 million in sales volume in the last two years and is the 12th highest in Brooklyn. For development, Sheepshead Bay has had very little major development activity relative to other neighborhoods.It had 725,671 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 the tax block, there was one new building construction project filed totaling 7,593 square feet. It is a 7,593-square-foot A-3 building developed by Sidney Ellman with plans filed May 1, 2020 and it has not been permitted yet.

The majority, or 80 percent of the 23,536 square feet of built space are mixed-use buildings, with office buildings next occupying 20 percent of the space.

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