Frank Shahidi pays $24.1M to Largo Investments for retail in Williamsburg

Frank Shahidi through the entity Shawnick Williamsburg LLC paid $24.1 million to Largo Investments through the entity 75 North 7th LLC for retail building (O5) at 75 North 7th Street in Williamsburg, Brooklyn.
The deal closed on July 26, 2022 and was recorded on August 4, 2022. The property has 14,998 square feet of built space for a total buildable of 15,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,606 and the price per buildable square foot is $1,606 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 Largo Investments was Nicholas Werner. The signatory for Frank Shahidi was Esmail Shahidi. The Commercial Observer reported on the sale yesterday.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Frank Shahidi had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Largo Investments had not purchased any other properties and sold one properties in one transactions for a total of $15.2 million over the same time period. The 14,998-square-foot property generated revenue of $612,218 or $41 per square foot, according to the most recent income and expense figures.

The property

The 75 North 7th Street parcel has frontage of 75 feet and is 100 feet deep with a total lot size of 7,500 square feet. The zoning is M1-2/R6B which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 2 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.5 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 $1,000 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 31, 2019. On these lots, there is one active new building construction project for a three-unit, 20,412-square-foot R-2 building. The project was developed by Asaf Ben-Nun with plans filed May 6, 2020 and permitted October 14, 2021.

The neighborhood

In Williamsburg, the bulk, or 39 percent of the 50 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 25 percent of the space. In sales, Williamsburg has the 8th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Williamsburg is the 9th most active neighborhood among other neighborhoods. It had 5.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 17 commercial properties representing 98,948 square feet of the 158,852 square feet. The largest owner is Yihai Group, followed by Southside United H.D.F.C. and then Canvas Property Group.
There are three active new building construction projects totaling 30,277 square feet. The largest is a three-unit, 20,412-square-foot R-2 building developed by Asaf Ben-Nun with plans filed May 6, 2020 and permitted October 14, 2021. The second largest is a five-unit, 4,983-square-foot R-2 building developed by William Lika with plans filed May 1, 2017 and permitted June 1, 2018.

The majority, or 52 percent of the 158,852 square feet of built space are elevator buildings, with walkup buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Largo Investments owned at least two commercial properties in New York City with 143,629 square feet and a city-determined market value of $11.7 million. (Market value is typically about 50% of actual value.) The portfolio has $54 million in debt, borrowed from Maxim Credit Group. Within the portfolio, the bulk, or 50 percent of the 143,629 square feet of built space are elevator properties, with D4 properties next occupying 50 percent of the space. They are all located in Brooklyn.

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