DAX Real Estate pays $5.8M to Rosey Grand LLC for mixed-use in Williamsburg

DAX Real Estate through the entity 191 Grand Owner LLC paid $5.8 million to Howard Hershkovich through the entity Rosey Grand LLC for the corner three-unit mixed-use building at 191 Grand Street in Williamsburg, Brooklyn.
The deal closed on May 16, 2022 and was recorded on June 1, 2022. The property has 7,039 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $823 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 seller bought the property on August 27, 2020, for $811,910.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Howard Hershkovich, head officer and Edward Vays, officer. The business entity is Rosey Grand, Llc.

The property

The 191 Grand Street parcel has frontage of 25 feet and is 104 feet deep with a total lot size of 2,608 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.1 million.The most recent loan totaled $3.6 million and was provided by TD Bank on December 19, 2019.

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 $25 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on February 19, 2013. 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 Williamsburg, the bulk, or 35 percent of the 65.1 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 19 percent of the space. In sales, Williamsburg has the 9th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Williamsburg is the 6th most active neighborhood among other neighborhoods. It had 5.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space. There were seven 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 two of the 15 commercial properties representing 10,169 square feet of the 87,513 square feet. The two identified owners are Rosa Ortiz and Howard Hershkovich. There are no active new building construction projects on this tax block.

The majority, or 60 percent of the 87,513 square feet of built space are mixed-use buildings, with specialty buildings next occupying 25 percent of the space.

Surrounding

Within a 400-foot radius of 191 Grand Street, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, two were in new building development. There were two new building permits. The most recent of these two items was a permit on August 19, 2021 for a 49,802-square-foot R-2 building with 59 residential units at 171 North 1st Street.
Of those five items, one was for major renovation including a certificate of occupancy change. It was an initial temporary certificate of occupancy issued on September 4, 2020 for the $600,000 renovation of zero-square-foot R-2 building with six residential units at 193 Grand Street.
Of those five items, two were loans above $5 million totaling $18.1 million. The most recent of the two was Mendel Jacobowitz which borrowed $10.5 million from Webster Bank secured by the 17,152-square-foot, eight-unit rental (C4) on 163 South 1st Street and two other properties on February 16, 2022.

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