Gas station, QSR, with 106K buildable sold in Morrisania for $13M

An anonymous buyer in care of the law firm Hirschen Singer & Epstein through the entity BX Third Ave, LLC, paid $13 million to Rettner Realty and Procida Companies through the entity Bathgate Plaza II LLC for the Wendy’s-leased retail building (K5) at 4040 3rd Avenue in Morrisania, Bronx and BP gas station (G3) at 4056 3rd Avenue in Morrisania, Bronx. The two parcels have more than 500 feet of frontage along 3rd Avenue.
The deal closed on April 25, 2024 and was recorded on May 15, 2024. The two properties have 4,540 square feet of built space and 101,231 square feet of additional air rights for a total buildable of 105,908 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $2,863 and the price per buildable square foot is $122 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 Rettner Realty and Procida Companies was Ronald Rettner and Christine Procida Albericci. The signatory for Hirschen Singer & Epstein registered was Bert Baradarian. The contract date was September 25, 2023. The Wendy’s parcel has a lease that started in 2004 which ran for 15 years, and according to the 2004 memorandum of lease, has three five-year renewal options. Many leases also have demolition clauses.

Prior sales and revenue

The seller Rettner Realty had not purchased any other properties and sold four properties in three transactions for a total of $8.8 million over the past 24 months. Out of the two properties, one with a total of 4,540 square feet of built space generated revenue of $303,948 per year.

The property

The retail building in Morrisania has 4,540 square feet of built space and 101,231 square feet of additional air rights for a total buildable of 105,908 square feet according to a PincusCo analysis of city data. The parcel has frontage of 290 feet and is 100 feet deep with a total lot size of 28,983 square feet. The zoning is M1-4 which allows for up to 2 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $1.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. 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 Morrisania, The majority, or 52 percent of the 25.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 20 percent of the space. In sales, Morrisania has had very little sales volume relative to other neighborhoods with $233.3 million in sales volume in the last two years. For development, Morrisania has had very little major development activity relative to other neighborhoods.It had 385,935 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block of 4040 3rd Avenue, PincusCo has identified the owners of 10 of the 14 commercial properties representing 271,633 square feet of the 434,173 square feet. The two identified owners are Phipps Houses and Nyc Department Of Education.
There are no active new building construction projects on this tax block.

The majority, or 50 percent of the 434,173 square feet of built space are specialty buildings, with walkup buildings next occupying 42 percent of the space.

The seller

The PincusCo database currently indicates that Procida Companies owned at least four commercial properties with 210 residential units in New York City with 137,370 square feet and a city-determined market value of $17.2 million. (Market value is typically about 50% of actual value.) The portfolio has $188.5 million in debt, borrowed from NYC Housing Development Corporation and Webster Bank. Within the portfolio, the bulk, or 100 percent of the 137,370 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Brooklyn.
The PincusCo database currently indicates that Rettner Realty owned at least one commercial property with six residential units in New York City with 43,393 square feet and a city-determined market value of $9.2 million. (Market value is typically about 50% of actual value.) The portfolio has $5 million in debt, borrowed from Webster Bank. The portfolio consists of at least a single office property. It is located in Manhattan.

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