Burke Leighton Group pays $2.1M to Dime for bank building in Midwood

Samuel Matalon’s Burke Leighton Group through the entity 1600 Avenue M Partners LLC paid $2.1 million to Dime Community Bank for the office building (O2) at 1600 Avenue M in Midwood, Brooklyn.
The deal closed on August 8, 2022 and was recorded on August 15, 2022. The property has 3,800 square feet of built space and 4,200 square feet of additional air rights for a total buildable of 8,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $552 and the price per buildable square foot is $262 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.) Samuel Matalon was the signatory for the buyer.

Prior sales and revenue

The 3,800-square-foot property generated revenue of $133,418 or $35 per square foot, according to the most recent income and expense figures.

The property

The 1600 Avenue M parcel has frontage of 22 feet and is 87 feet deep with a total lot size of 2,000 square feet. The lot is irregular. 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 $644,000.

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 not received any significant violations 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 Midwood, the majority, or 53 percent of the 19.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 15 percent of the space. In sales, Midwood has 1.3 times the average sales volume among other neighborhoods with $435.6 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Midwood has had very little major development activity relative to other neighborhoods.It had 545,400 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 this tax block, PincusCo has identified the owners of one of the 13 commercial properties representing 22,540 square feet of the 58,729 square feet. The identified owner is Jeno Guttmann.
There are three active new building construction projects totaling 31,402 square feet. The largest is a 17-unit, 15,738-square-foot R-2 building developed by Ramazi Mitaishuili with plans filed September 5, 2017 and permitted May 17, 2022. The second largest is a 11-unit, 8,388-square-foot R-2 building developed by Eliran Eliran with plans filed September 26, 2014 and it has not been permitted yet.

The majority, or 55 percent of the 58,729 square feet of built space are mixed-use buildings, with walkup buildings next occupying 38 percent of the space.

Surrounding

Within a 400-foot radius of 1600 Avenue M, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, one was for major renovation including a certificate of occupancy change. It was a permit issued on September 10, 2021 for the $300,000 renovation of 10,520-square-foot A-3 building with no residential units at 1609 Avenue M.
Of those three items, two were loans above $5 million totaling $41.1 million. The most recent of the two was Jeno Guttmann which borrowed $34.1 million from Hanmi Bank secured by the 67,000-square-foot, 31-unit rental (C1) on 1313 East 16th Street and six other properties on June 3, 2022.

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