Gibraltar Management pays $10.6M to Renaissance Realty Group for retail in Park Slope

Gibraltar Management through 7th Avenue Properties LLC paid $10.6 million to Renaissance Realty Group through 79-81 7th Avenue LLC for the retail building (K1) at 79-81 7th Avenue in Park Slope, Brooklyn.
The deal closed on September 14, 2022 and was recorded on September 22, 2022. The property has 5,100 square feet of built space and 11,227 square feet of additional air rights for a total buildable of 16,350 square feet according to PincusCo analysis of city data. The sale price per built square foot is $2,073 and the price per buildable square foot is $646 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 December 14, 2006, for $5.1 million. The signatory for Renaissance Realty Group was David Chemtob. The signatory for Gibraltar Management was Joshua J. Grossman.

Prior sales and revenue

The 5,100-square-foot property generated revenue of $461,907 or $91 per square foot, according to the most recent income and expense figures.

The property

The 79-81 7th Avenue parcel has frontage of 50 feet and is 109 feet deep with a total lot size of 5,450 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Park Slope Historic District. The city-designated market value for the property in 2022 is $2 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 one DOB violation and $500 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 Park Slope, the bulk, or 36 percent of the 9.8 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 26 percent of the space. In sales, Park Slope has 1.5 times the average sales volume among other neighborhoods with $514.3 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Park Slope has had very little major development activity relative to other neighborhoods.It had 520,974 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 five of the 20 commercial properties representing 21,760 square feet of the 114,013 square feet. The largest owner is Harriet Lipsitz, followed by Barbara Mosconi and then Kristina Neumann.
there are no active new building construction projects on this tax block.

The majority, or 50 percent of the 107,057 square feet of built space are walkup buildings, with mixed-use buildings next occupying 35 percent of the space.

Surrounding

Within a 400-foot radius of 79-81 7th Avenue, Pincusco identified two commercial real estate items of interests occurred over the past 24 months.
One of those two items was a sale which Carlyle Group through Townhouse Rental II, L.L.C. bought the 4,000-square-foot, four-unit mixed-use building (S3) on 82 7th Avenue for $5.4 million from Greenbrook Partners on April 11, 2022.
One of those two items was a loan which Carlyle Group borrowed $500 million from Invesco Real Estate secured by the 7,200-square-foot, four-unit mixed-use building (S3) on 82 7th Avenue and 37 other properties on July 18, 2022.

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