Hang Dong Zhang buys stake valued at $5.3M in hotel in Sunset Park
517 39th Street (Credit - Google)
Hang Dong Zhang through the entity GBV 39 Realty LLC acquired a stake valued at $5.3 million from Victor Peng through the entity Kings King Realty LLC for the hotel building (H3) at 517 39th Street in Sunset Park, Brooklyn.
The deal closed on June 22, 2022 and was recorded on July 14, 2022. The property has 20,640 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $256 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 November 13, 2008, for $1.8 million. Victor Peng retains an ownership stake as a member, according to city records. Zhang signed a 16-year lease in July 2021 as tenant, then a day later signed a new lease as sublandlord with Vipulkumar R. Patel as subtenant.
The property
The 517 39th Street parcel has frontage of 75 feet and is 100 feet deep with a total lot size of 7,512 square feet. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $4.5 million.
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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 $2,000 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 Sunset Park, the bulk, or 29 percent of the 35.7 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 27 percent of the space. In sales, Sunset Park has 1.4 times the average sales volume among other neighborhoods with $458.4 million in sales volume in the last two years and is the 10th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.It had 825,146 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 this tax block, PincusCo has identified the owners of three of the 36 commercial properties representing 14,096 square feet of the 209,518 square feet. The largest owner is Biagio Lamberti, followed by Kesho Bachan and then City of New York.
There are no active new building construction projects on this tax block.
The majority, or 39 percent of the 209,518 square feet of built space are industrial buildings, with residential walkup buildings next occupying 26 percent of the space.
Surrounding
PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 517 39th Street that occurred over the past 24 months.
Correction: A prior version of this post reported the address as 517 39th Avenue, when in fact it’s 517 39th Street.
Direct link to Acris document. link