Doe Fund pays $6.5M to Ahmad Associates LLC for dev site in Brownsville

The Doe Fund through the entity 800 Rockaway Housing Development Fund Corporation paid $6.5 million to Ramzey Ahmad of Ahmad Associates LLC for the retail building (K1) as development parcel at 794 Rockaway Avenue in Brownsville, Brooklyn. The parcel was formerly occupied by a grocery store and its parking lot.
The deal closed on December 13, 2022 and was recorded on December 19, 2022. The property has 9,612 square feet of built space and 54,991 square feet of additional air rights for a total buildable of 64,555 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $676 and the price per buildable square foot is $100 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.)

Prior sales and revenue

The 9,612-square-foot property generated revenue of $331,109 or $34 per square foot, according to the most recent income and expense figures.

The property

The parcel has frontage of 200 feet and is 200 feet deep with a total lot size of 26,566 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.7 million. The most recent loan totaled $7.7 million and was provided by Owemanco Mortgage Holding Corporation on March 25, 2022.

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 $2,050 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 Brownsville, The bulk, or 46 percent of the 28.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Brownsville has the 40th highest sale turnover among other neighborhoods in Brooklyn with $64.9 million in sales volume in the last two years. For development, Brownsville has had very little major development activity relative to other neighborhoods.It had 888,613 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.

The block

On this tax block, PincusCo has identified the owners of three of the five commercial properties representing 200,385 square feet of the 210,351 square feet. The largest owner is L+M Development Partners, followed by Ramzey Ahmad and then St. Nicks Alliance.
On the tax block, there were two new building construction projects totaling 145,665 square feet. The largest is a 175-unit, 142,129 square-foot residential (R-2) building submitted by L+M Development Partners and filed by Lisa Gomez with plans filed October 4, 2019 and permitted April 2, 2020. The second largest is a four-unit, 3,536 square-foot residential (R-2) building submitted by Rona Reodica with plans filed November 18, 2020 and it has not been permitted yet.

The majority, or 90 percent of the 200,385 square feet of built space are elevator buildings, with walkup buildings next occupying 6 percent of the space.

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