FBE Limited pays $40.5M to Signature Investment Group for vacant lot in Mill Basin

The Fruchthandler family’s FBE Limited through the entity 2124 Mill A LLC (and others) paid $40.5 million to Signature Investment Group through the entity Mill Basin LLC for the mostly-vacant property (G7) at 2124 Mill Avenue in Mill Basin, Brooklyn.
This sale closed on the same day that FBE Limited sold a homeless shelter to Signature Investment Group for $45.9 million, as PincusCo reported yesterday.
The deal closed on October 25, 2022 and was recorded on November 1, 2022. The property has zero square feet of built space and 117,500 square feet of additional air rights for a total buildable of 117,500 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $344 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 Signature Investment Group was Manny Shurka. The signatory for FBE Limited was Yehoshua Leib Fruchthandler.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer FBE Limited purchased three properties in three transactions for a total of $76 million and sold three properties in three transactions for a total of $214.9 million over the past 24 months.
The seller Signature Investment Group purchased one properties in one transactions for a total of $45.9 million and had not sold any properties over the same time period.

The property

The 2124 Mill Avenue parcel has frontage of 372 feet and is 566 feet deep with a total lot size of 235,000 square feet. The lot is irregular. The zoning is R3-1 which allows for up to 0.5 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.7 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 not received any significant violations in the last year.

Development

On the lot, there is no major development.

The block

On this tax block, PincusCo has identified the owners of five of the 41 commercial properties representing 2,744,083 square feet of the 3,115,387 square feet. The largest owner is Macy’s Inc., followed by Target Corporation and then Brookfield Properties.
On the tax block, there were three new building construction projects totaling 115,551 square feet. The largest is a zero-unit, 103,179-square-foot E building developed by Paul Grosman with plans filed September 18, 2015 and permitted July 31, 2018. The second largest is a N/A-unit, 10,722-square-foot A-2 building developed by Anthony Williams with plans filed October 26, 2018 and it has not been permitted yet.

the majority, or 88 percent of the 2.7 million square feet of built space are mixed-use buildings, with retail buildings next occupying 7 percent of the space.

The seller

The PincusCo database currently indicates that Signature Investment Group owned at least 26 properties, most of which are long-held gas stations or related assets, and most are in Brooklyn.

The buyer

The PincusCo database currently indicates that FBE Limited owned at least 28 commercial properties in New York City with 897,980 square feet and a city-determined market value of $120.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 67 percent of the 897,980 square feet of built space are elevator properties, with rental condo properties next occupying 20 percent of the space. The bulk, or 82 percent of the built space, is in Brooklyn, with Manhattan next at 16 percent of the space.

Direct link to Acris document. link