Greenbrook Partners pays $3.6M for mixed-use in Park Slope, second purchase in year

Greenbrook Partners through the entity 88 5 Ave, LLC paid $3.6 million to Demme Matheos through the entity 88 5th Avenue Realty Corp for the six-unit mixed-use building (S5) at 88 5th Avenue in Park Slope, Brooklyn.
This is Greenbrook Partners second purchase in 2023, which is a slower acquisition rate compared with 2019 to 2022.
The deal closed on June 2, 2023 and was recorded on June 13, 2023. The property has 4,800 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $750 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 Demme Matheos was Demme Matheos. The signatory for Greenbrook Partners was Gregory P. Fournier.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Greenbrook Partners purchased 38 properties in 38 transactions for a total of $140 million and sold 18 properties in 18 transactions for a total of $104.4 million over the past 24 months.
The seller Demme Matheos 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 Demme Matheos, head officer and Betti Altieri, agent. The business entities are BA Consultants,Inc and 88 5th Avenue Realty Corp. The 4,800-square-foot property generated revenue of $148,848 or $31 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 6 residential units in Park Slope has 4,800 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 51 feet deep with a total lot size of 1,279 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. 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 property for the past 24 months. In addition, according to city public data, the property has received $50 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 $1 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 1.9 times the average sales volume among other neighborhoods with $686.2 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Park Slope has had very little major development activity relative to other neighborhoods.It had 527,477 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 10 of the 18 commercial properties representing 49,773 square feet of the 85,229 square feet. The largest owner is Harry Einhorn, followed by Demme Matheos and then Conway Capital.
On the tax block, there was one new building construction project filed totaling 132,409 square feet. It is a 193-unit, 132,409 square-foot residential (R-2) building submitted by Harry Einhorn and filed by Harry Einhorn with plans filed October 29, 2019 and it has not been permitted yet.

The majority, or 72 percent of the 85,229 square feet of built space are mixed-use buildings, with walkup buildings next occupying 28 percent of the space.

The seller

The PincusCo database currently indicates that Demme Matheos owned at least one commercial property with six residential units in New York City with 4,800 square feet and a city-determined market value of $1.8 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single mixed-use property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Greenbrook Partners owned at least 79 commercial properties with 615 residential units in New York City with 585,050 square feet and a city-determined market value of $169.5 million. (Market value is typically about 50% of actual value.) The portfolio has $272.5 million in debt, with top three lenders as Invesco Real Estate, Rialto Capital Management, and Signature Bank respectively. Within the portfolio, the bulk, or 64 percent of the 585,050 square feet of built space are walkup properties, with mixed-use properties next occupying 11 percent of the space. They are all located in Brooklyn.

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