Firebird Grove sells mixed-use in Prospect Heights for $3.9M

AXG Management through the entity AXG Management LLC paid $3.9 million to Firebird Grove through the entity OR 66 Sixth, LLC for the three-unit mixed-use building (K4) at 479 Bergen Street in Prospect Heights, Brooklyn.
The deal closed on April 11, 2024 and was recorded on April 26, 2024. The property has 4,606 square feet of built space and 845 square feet of additional air rights for a total buildable of 5,456 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $846 and the price per buildable square foot is $714 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 September 22, 2020, for $2.5 million. The signatory for Firebird Grove was Adam Semler. The signatory for AXG Management was Chengronghao Gu. The contract date was February 13, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer AXG Management had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Firebird Grove purchased six properties in six transactions for a total of $35.1 million and sold one properties in one transactions for a total of $2.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Marla Siegel, head officer and Jair Gutierrez, agent. The business entity is Or 66 Sixth, Llc.

The property

The mixed-use building with 3 residential units in Prospect Heights has 4,606 square feet of built space and 845 square feet of additional air rights for a total buildable of 5,456 square feet according to a PincusCo analysis of city data. The parcel has frontage of 17 feet and is 78 feet deep with a total lot size of 1,364 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.1 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 $2,000 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 Prospect Heights, The bulk, or 49 percent of the 7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Prospect Heights has had very little sales volume relative to other neighborhoods with $199.7 million in sales volume in the last two years. For development, Prospect Heights has had very little major development activity relative to other neighborhoods.It had 500,180 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space. There were two 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 six of the 15 commercial properties representing 24,972 square feet of the 53,578 square feet. The largest owner is Resk Ali, followed by Mussed Shami and then Michael Pintchik.
There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 53,578 square feet of built space are mixed-use buildings, with walkup buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that Firebird Grove owned at least 45 commercial properties with 376 residential units in New York City with 335,967 square feet and a city-determined market value of $153.9 million. (Market value is typically about 50% of actual value.) The portfolio has $37 million in debt, with top three lenders as Derby Copeland Capital, Bank of America, and Signature Bank respectively. Within the portfolio, the bulk, or 56 percent of the 335,967 square feet of built space are walkup properties, with mixed-use properties next occupying 30 percent of the space. The bulk, or 51 percent of the built space, is in Manhattan, with Brooklyn next at 49 percent of the space.

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