Caterer pays $7.3M for industrial in East Williamsburg

An affiliate of the catering firm Blue Steel Events through the entity Small Medium Large Batch LLC paid $7.3 million to Michael Sherry and Arthur Rubenstein through the entity Scholes Street Associates for the industrial building (F9) at 289 Scholes Street in East Williamsburg, Brooklyn.
The deal closed on April 20, 2023 and was recorded on May 4, 2023. The property has 16,500 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $442 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 Michael Sherry and Arthur Rubenstein was Michael Sherry and Arthur Rubenstein. Dmitry Pankov of Blue Steel Events was the signatory for the loan.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Blue Steel Events had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Michael Sherry had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in East Williamsburg has 16,500 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 200 feet deep with a total lot size of 15,000 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.9 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 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 $1 million on this tax lot.

The neighborhood

In East Williamsburg, The majority, or 62 percent of the 17 million square feet of commercial built space are industrial buildings, with walkup buildings next occupying 11 percent of the space. In sales, East Williamsburg has 1.3 times the average sales volume among other neighborhoods with $452 million in sales volume in the last two years and is the 15th highest in Brooklyn. For development, East Williamsburg has 1.2 times the average amount of major developments relative to other neighborhoods and is the 15th 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 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the 17 commercial properties representing 2,500 square feet of the 113,322 square feet. The identified owner is Kenny Kai Yang.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 113,322 square feet of built space are industrial buildings, with development buildings next occupying 0 percent of the space.

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