Con Ed acquires parcel through eminent domain valued at $14.8M for industrial in East Flatbush

Consolidated Edison Company through the entity Consolidated Edison Company Of New York, Inc. acquired an interest from the Tomassetti family through the entity 789 East 91st Street LLC valued at $14.8M for industrial building (E1) at 789 East 91st Street in East Flatbush, Brooklyn.
The deal closed on October 5, 2023 and was recorded on December 8, 2023. The property has 44,000 square feet of built space and 1,840 square feet of additional air rights for a total buildable of 46,000 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $335 and the price per buildable square foot is $320 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.)
This is an entity level acquisition. The sale was structured through a court order for eminent domain purchase. The Tomassetti family included Dino Tomassetti Jr.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Consolidated Edison Company had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller family including Dino Tomassetti Jr. had not purchased any other properties and sold four properties in three transactions for a total of $136.5 million over the same time period.

The property

The industrial building in East Flatbush has 44,000 square feet of built space and 1,840 square feet of additional air rights for a total buildable of 46,000 square feet according to a PincusCo analysis of city data. The parcel has frontage of 220 feet and is 200 feet deep with a total lot size of 46,000 square feet. The lot is irregular. 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 $2.6 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 $385 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 East Flatbush, The bulk, or 32 percent of the 42.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 24 percent of the space. In sales, East Flatbush has near average sales volume among other neighborhoods with $296.8 million in sales volume in the last two years and is the 26th highest in Brooklyn. For development, East Flatbush has 2.1 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Brooklyn. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the five commercial properties representing zero square feet of the 62,000 square feet. The identified owner is LIRR.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 62,000 square feet of built space are industrial buildings.

The seller

The PincusCo database currently indicates that Dino Tomassetti Jr. owned at least one commercial property with one residential unit in New York City with 150,888 square feet and a city-determined market value of $38 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

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