Builders Group USA pays $7M to Royalton Capital for industrial in Bushwick

Builders Group USA through the entity 972 Bushwick LLC paid $7 million to Royalton Capital through the entity Artemesia Spe LLC for the industrial building (G7) at 972 Bushwick Avenue in Bushwick, Brooklyn.
The deal closed on January 5, 2024 and was recorded on January 17, 2024. The property has zero square feet of built space and 16,353 square feet of additional air rights for a total buildable of 16,353 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $426 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 June 21, 2018, for $2.5 million. The signatory for Royalton Capital was Jin Lee. The signatory for Builders Group USA was Yitzchok Salamon. The contract date was July 7, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Builders Group USA had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Royalton Capital had not purchased any other properties and had not sold any properties over the same time period.

The property

The parcel has frontage of 77 feet and is 120 feet deep with a total lot size of 6,730 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $288,000.

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 not received any significant violations in the last year.

Development

On the lot, there is one active new building construction project for a 33-unit, 52,238 square-foot R-2 building. The project was submitted by Joshua John with plans filed October 17, 2017 and it has not been permitted yet.

The neighborhood

In Bushwick, The bulk, or 44 percent of the 33.6 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 2 times the average sales volume among other neighborhoods with $629.7 million in sales volume in the last two years and is the 8th highest in Brooklyn. For development, Bushwick has 1.3 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Brooklyn. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the six commercial properties representing 131,392 square feet of the 155,056 square feet. The largest owner is RiseBoro Community Partnership, followed by Kung Ming Hu and then Grj, Llc.
On the tax block, there were three new building construction projects totaling 115,140 square feet. The largest is a 33-unit, 52,238 square-foot residential (R-2) building submitted by Joshua John with plans filed October 17, 2017 and it has not been permitted yet. The second largest is a 15-unit, 52,238 square-foot residential (R-2) building submitted by Joshua John with plans filed October 11, 2017 and it has not been permitted yet.

The majority, or 77 percent of the 155,056 square feet of built space are elevator buildings, with walkup buildings next occupying 23 percent of the space.

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