DII Stores pays $10.4M for retail in Sunset Park

Discount retailer DII Stores through the entity Sunset NYC Holdings LLC paid $10.4 million to Albert Mitrani through the entity Estjon, LLC for the retail building (K2) at 5105-5111 5th Avenue in Sunset Park, Brooklyn. The building has been long-occupied by Flamingo Furniture store.
The deal closed on September 13, 2023 and was recorded on September 22, 2023. The property has 21,600 square feet of built space and 1,545 square feet of additional air rights for a total buildable of 23,181 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $481 and the price per buildable square foot is $448 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 Albert Mitrani was Albert Mitrani. The signatory for DII Stores was Morris Dweck. The contract date was June 26, 2023. This is one of the two locations of Flamingo Furniture. DII Stores is the trade name for DII Enterprises.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer DII Stores had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Albert Mitrani had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail building in Sunset Park has 21,600 square feet of built space and 1,545 square feet of additional air rights for a total buildable of 23,181 square feet according to a PincusCo analysis of city data. The parcel has frontage of 79 feet and is 100 feet deep with a total lot size of 7,727 square feet. The lot is irregular. The zoning is C4-3A which allows for up to 3 times floor area ratio (FAR) for commercial and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.3 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 three DOB violations, $2,500 in ECB penalties, and $2,500 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 Sunset Park, The bulk, or 30 percent of the 34 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 24 percent of the space. In sales, Sunset Park has 1.5 times the average sales volume among other neighborhoods with $529.4 million in sales volume in the last two years and is the 14th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.

The block

On this tax block, PincusCo has identified the owners of one of the eight commercial properties representing 21,600 square feet of the 71,948 square feet. The identified owner is Estjon.
There are no active new building construction projects on this tax block.

The majority, or 59 percent of the 71,948 square feet of built space are retail buildings, with mixed-use buildings next occupying 41 percent of the space.

The buyer

The PincusCo database currently indicates that Morris Dweck owned at least one commercial property in New York City with 7,725 square feet and a city-determined market value of $1.7 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single retail property. It is located in Manhattan.

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