DAX Real Estate pays $3.6M for mixed-use in Greenpoint

DAX Real Estate through the entity 128 Franklin Owner LLC paid $3.6 million to Laraine Bronn through the entity Rldv Property LLC for the three-unit mixed-use building (S3) at 128 Franklin Street in Greenpoint, Brooklyn.
The deal closed on January 23, 2023 and was recorded on March 1, 2023. The property has 4,274 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $846 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 Laraine Bronn was Laraine Bronn. The signatory for DAX Real Estate was Daniel Hedaya.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer DAX Real Estate purchased nine properties in six transactions for a total of $48.6 million and sold one property in one transaction for a total of $34 million over the past 24 months.
The seller Laraine Bronn had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Maxwell Seibald, head officer. The business entity is 128 Franklin Owner Llc. The 4,274-square-foot property generated revenue of $108,175 or $25 per square foot, according to the most recent income and expense figures.

The property

The 128 Franklin Street parcel has frontage of 23 feet and is 70 feet deep with a total lot size of 1,663 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Greenpoint Historic District. The city-designated market value for the property in 2022 is $1.8 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 two DOB violations and $400 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 Greenpoint, the bulk, or 30 percent of the 22.7 million square feet of commercial built space are walkup buildings, with industrial buildings next occupying 27 percent of the space. In sales, Greenpoint has 2 times the average sales volume among other neighborhoods with $713 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, Greenpoint has 2.6 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Brooklyn. It had 2.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 21 of the 33 commercial properties representing 150,578 square feet of the 217,676 square feet. The largest owner is Wing Shum, followed by John Losey and then Byong Hoi Kong.
there are no active new building construction projects on this tax block.

The majority, or 41 percent of the 215,604 square feet of built space are walkup buildings, with mixed-use buildings next occupying 25 percent of the space.

The buyer

The PincusCo database currently indicates that DAX Real Estate owned at least 12 commercial properties in New York City with 80,255 square feet and a city-determined market value of $21.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 84 percent of the 80,255 square feet of built space are mixed-use properties, with walkup properties next occupying 10 percent of the space. They are all located in Brooklyn.

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