Burger Brothers pays $4M for Burger King-occupied retail in Brooklyn’s Bath Beach

Burger Brothers Restaurant Group paid a group of individuals $4 million for the retail building (K5) at 2164 86th Street in Bath Beach, Brooklyn. The sale was an entity level transaction, not a deed transfer. The fast food chain Burger King controls the property though a lease which through the exercise of three options runs to June 2025, according to a lease signed and recorded in 1998.
The deal closed on February 22, 2024 and was recorded on March 8, 2024. The property has 6,786 square feet of built space and 5,162 square feet of additional air rights for a total buildable of 11,948 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $596 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 the sellers included William Siegel. The signatory for Burger Brothers Restaurant Group was Harry Braunstein. Burger Brothers Restaurant Group is led by John and Jeff Froccaro and Harry Braunstein is a partner. According to reports, Burger Brothers Restaurant Group opened its first location in 2013 in Long Island’s Franklin Square.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Burger Brothers Restaurant Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller William Siegel had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail building in Bath Beach has 6,786 square feet of built space and 5,162 square feet of additional air rights for a total buildable of 11,948 square feet according to a PincusCo analysis of city data. The parcel has frontage of 49 feet and is 100 feet deep with a total lot size of 4,917 square feet. The zoning is C4-2 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $3.5 million.

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 $300 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 Bath Beach, The bulk, or 36 percent of the 5.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 25 percent of the space. In sales, Bath Beach has the 40th highest sale turnover among other neighborhoods in Brooklyn with $70.4 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 416,272 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 18 commercial properties representing 184,676 square feet of the 223,037 square feet. The largest owner is Robert Spitalnick, followed by Phillip Korb and then Meridian Properties.
There are no active new building construction projects on this tax block.

The majority, or 50 percent of the 223,037 square feet of built space are elevator buildings, with office buildings next occupying 19 percent of the space.

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