HH Realty Equities pays $5.3M for two mixed-use properties in South Slope

HH Realty Equities through the entity 356-358 Seventh LLC paid $5.3 million to Dennis DeSimone and Joan Ferrandino for the midblock two-unit mixed-use building at 356 7th Avenue in South Slope, Brooklyn and midblock two-unit mixed-use building at 358 7th Avenue in South Slope, Brooklyn.
The deal closed on March 1, 2022 and was recorded on March 14, 2022. The two properties have 7,000 square feet of built space and 3,155 square feet of additional air rights for a total buildable of 10,146 square feet according to PincusCo analysis of city data. The sale price per built square foot is $764 and the price per buildable square foot is $527 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 Dennis DeSimone and Joan Ferrandino was Dennis DeSimone and Joan Ferrandino. The signatory for HH Realty Equities was Ariel Akkad.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 356 7th Avenue.

The property

The 356 7th Avenue parcel has frontage of 19 feet and is 77 feet deep with a total lot size of 1,514 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 Extension. The city-designated market value for the property in 2022 is $2.4 million.

Violations and lawsuits

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have received $1,900 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 South Slope, the bulk, or 42 percent of the 9.4 million square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 23 percent of the space. In sales, South Slope has 1.2 times the average sales volume among other neighborhoods with $322.9 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, South Slope has had very little major development activity relative to other neighborhoods.It had 91,369 square feet of commercial and multi-family construction under development in the last two years, which represents 0.98 percent of the neighborhood’s built space.

The block

The majority, or 68 percent of the 207,422 square feet of built space are 1-4 family buildings, with mixed-use buildings next occupying 25 percent of the space.

The buyer

The PincusCo database currently indicates that HH Realty Equities owned at least two commercial properties with 146,650 square feet and a city-determined market value of $12.1 million. (Market value is typically about 50% of actual value.) The portfolio has $25 million in debt, borrowed from UBS Bank. Within the portfolio, all identified are industrial properties. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 356 7th Avenue, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was an initial temporary certificate of occupancy issued on August 20, 2020 for the $300,000 renovation of 2,583-square-foot R-3 building with one residential units at 566 10th Street.

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