GTJ REIT sells industrial in East New York for $29.4M

Signatory Agostino Vona through the entity Affinity Realty, LLC paid $29.4 million to GTJ REIT through the entity Gwl 625 Wortman LLC for the industrial building (E1) at 625 Wortman Avenue in East New York, Brooklyn.
The deal closed on November 9, 2022 and was recorded on November 15, 2022. The property has 58,000 square feet of built space and 11,900 square feet of additional air rights for a total buildable of 70,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $506 and the price per buildable square foot is $420 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 October 26, 2021, for $13.4 million. The signatory for GTJ REIT was Paul Cooper. The signatory for Agostino Vona was Agostino Vona.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Agostino Vona purchased one property in one transaction for a total of $2.5 million and has no record it sold any properties over the past 24 months.
The seller GTJ REIT purchased one property in one transactions for a total of $13.4 million and had not sold any properties over the same time period. The 58,000-square-foot property generated revenue of $1.1 million or $19 per square foot, according to the most recent income and expense figures.

The property

The 625 Wortman Avenue parcel has frontage of 200 feet and is 350 feet deep with a total lot size of 70,000 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $5.3 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 $225 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 East New York, the bulk, or 40 percent of the 44.6 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has 2.3 times the average sales volume among other neighborhoods with $804.5 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, East New York has 3.3 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of one of the two commercial properties representing 58,000 square feet of the 93,500 square feet. The identified owner is Gtj Reit.
There are no active new building construction projects on this tax block.

All properties are industrial.

The seller

The PincusCo database currently indicates that GTJ Reit owned at least 12 commercial properties in New York City with 291,657 square feet and a city-determined market value of $62.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 89 percent of the 291,657 square feet of built space are industrial properties, with specialty properties next occupying 11 percent of the space. The bulk, or 69 percent of the built space, is in Queens, with Brooklyn next at 31 percent of the space.

The buyer

The PincusCo database currently indicates that Agostino Vona owned at least one commercial property in New York City with 2,660 square feet and a city-determined market value of $894,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Brooklyn.

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