Fouad Elayyan pays $9M for retail in Bushwick

Fouad Elayyan through the entity 1291 Holding LLC paid $9 million to Beth Schneiderman through the entity 1291 Realty LLC for retail building (K2) at 1289 Broadway in Bushwick, Brooklyn.
The deal closed on September 13, 2022 and was recorded on September 26, 2022. The property has 16,084 square feet of built space and 20,700 square feet of additional air rights for a total buildable of 36,717 square feet according to PincusCo analysis of city data. The sale price per built square foot is $559 and the price per buildable square foot is $245 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 Beth Schneiderman was Beth Schneiderman. The signatory for Fouad Elayyan was Fouad Elayyan.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Fouad Elayyan had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Beth Schneiderman had not purchased any other properties and had not sold any properties over the same time period. The 16,084-square-foot property generated revenue of $359,273 or $22 per square foot, according to the most recent income and expense figures.

The property

The 1289 Broadway parcel has frontage of 54 feet and is 250 feet deep with a total lot size of 15,110 square feet. The lot is irregular. The zoning is C4-3 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $1.4 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 received $1,700 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 $5 million on this tax lot.

The neighborhood

In Bushwick, the bulk, or 44 percent of the 33.4 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 3 times the average sales volume among other neighborhoods with $1 billion in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Bushwick has 1.9 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Brooklyn. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 17 commercial properties representing 51,465 square feet of the 142,251 square feet. The largest owner is Moshe Silberstein, followed by Greenbrook Partners and then S&J Sunny Realty III, LLC.
There is one active new building construction project totaling 5,038 square feet. It is a seven-unit, 5,038-square-foot R-2 building developed by Meshulam Hass with plans filed June 3, 2015 and permitted February 12, 2018.

The majority, or 41 percent of the 142,251 square feet of built space are mixed-use buildings, with retail buildings next occupying 38 percent of the space.

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