FREO Group pays $21.5M to Kalikow Group for two properties in Williamsburg

FREO Group through the entity 68 Richardson Owner LLC paid $21.5 million to Kalikow Group through the entity 68 Richardson Realty, LLC for 24-unit residential elevator building (D2) at 68 Richardson Street in Williamsburg, Brooklyn and development building (V1) at 60A Lorimer Street in Williamsburg, Brooklyn.
The deal closed on July 7, 2022 and was recorded on July 18, 2022. The two properties have 32,532 square feet of built space and 546 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $660 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 Kalikow Group was Edward Kalikow. The signatory for FREO Group was Karim Elsayyad. Karim Elsayyad is the vice president of investments at FREO Group.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 68 Richardson Street.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer FREO Group purchased one property in one transaction for a total of $19.3 million and sold one property in one transaction for a total of $34 million over the past 24 months.
The seller Kalikow Group had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Gregory Kalikow, head officer and Jordan Platt, agent. The business entities are Kaled Management Corp and 68 Richardson Street Realty Llc. Out of the two properties, one with a total of 32,532 square feet of built space generated revenue of $1.3 million per year.

The property

The 68 Richardson Street parcel has frontage of 69 feet and is 100 feet deep with a total lot size of 6,900 square feet. The zoning is M1-2/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $5.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received one housing violation 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 block

On the tax block of 68 Richardson Street, PincusCo has identified the owners of six of the nine commercial properties representing 232,992 square feet of the 242,992 square feet. The largest owner is UDR, Inc., followed by Kaled Management and then Dunn Development. There are no active new building construction projects on this tax block.

The majority, or 93 percent of the 236,050 square feet of built space are elevator buildings, with industrial buildings next occupying 4 percent of the space.

The buyer

The PincusCo database currently indicates that Freo Group owned at least one commercial property in New York City with 32,700 square feet and a city-determined market value of $8.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single elevator property. It is located in Manhattan.

Direct link to Acris document. link