Cayre Equities pays $7.8M to long-time owner for commercial building in East New York

Cayre Equities through the entity CS Sutter Ave LLC paid $7.8 million to Monts and Associates for corner educational building at 1091 Sutter Avenue in East New York, Brooklyn. Monts was led for decades by a colorful developer who often frustrated local government in Washington, D.C., and who died in 2009.
The deal closed on April 12, 2022 and was recorded on May 3, 2022. The property has 27,393 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $282 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 Monts and Associates was Ami Whelan. The signatory for Cayre Equities was Jack Cayre. T. Conrad Monts was a developer in Washington, D.C. who was a thorn in the side of city government. He and two partners acquired the Sutter Avenue building in 1973. Cayre Equities has been an active developer of storage space. 

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Cayre Equities had purchased any other properties and sold three properties in three transactions for a total of $106.8 million over the past 24 months.
The seller Monts and Associates had not purchased any other properties and had not sold any properties over the same time period.

The property

The 1091 Sutter Avenue parcel has frontage of 40 feet and is 100 feet deep with a total lot size of 15,000 square feet. The lot is irregular. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4 million.

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 $3,125 in ECB penalties and $3,125 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 East New York, the bulk, or 31 percent of the 68.3 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 26 percent of the space. In sales, East New York has the 4th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, East New York has 2.5 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Brooklyn. It had 2.2 million 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. There was one pre-foreclosure suit filed among other specialty buildings in the past 12 months.

The block

There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 88,731 square feet of built space are 1-4 family buildings, with specialty buildings next occupying 43 percent of the space.

The buyer

The PincusCo database, which is incomplete, currently indicates that Cayre Equities owned at least five commercial properties with 102,860 square feet and a city-determined market value of $13.1 million. (Market value is typically about 50% of actual value.) The portfolio has $88.9 million in debt, borrowed from Bank Hapoalim and Santander Bank. Within the portfolio, the bulk, or 65 percent of the 102,860 square feet of built space are industrial properties, with office properties next occupying 35 percent of the space. The bulk, or 65 percent of the built space, is in Brooklyn, with Manhattan next at 35 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 1091 Sutter Avenue that occurred over the past 24 months.

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