Hiu Ian Cheng pays $7.3M to Jack Srour for retail in Bensonhurst, in quick flip

Hiu Ian Cheng through the entity 1919 86th St LLC paid $7.3 million to Jack Srour through the entity 1921 86th Street LLC for retail building (K2) at 1917-1925 86th Street in Bensonhurst, Brooklyn.
The deal closed on October 20, 2022 and was recorded on November 1, 2022. The property has 21,622 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $337 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 September 8, 2022, for $6.3 million. The signatory for Jack Srour was Jack Srour and Juda Srour. The signatory for Hiu Ian Cheng was Hiu Ian Cheng.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Hiu Ian Cheng purchased one property in one transaction for a total of $12.2 million and has no record it sold any properties over the past 24 months.
The seller Jack Srour purchased one property in one transaction for a total of $6.3 million and had not sold any properties over the same time period. The 21,622-square-foot property generated revenue of $615,427 or $28 per square foot, according to the most recent income and expense figures.

The property

The 1917-1925 86th Street parcel has frontage of 88 feet and is 100 feet deep with a total lot size of 8,804 square feet. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.2 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 not received any significant violations 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 Bensonhurst, the bulk, or 34 percent of the 16.5 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Bensonhurst has had very little sales volume relative to other neighborhoods with $291.2 million in sales volume in the last two years. For development, Bensonhurst has had very little major development activity relative to other neighborhoods.It had 375,214 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 four of the 26 commercial properties representing 29,550 square feet of the 156,344 square feet. The largest owner is 86 Stasi Realty LLC, followed by Ostrowsky Judith and then Frank Mannarino.
There are no active new building construction projects on this tax block.

The majority, or 48 percent of the 156,344 square feet of built space are mixed-use buildings, with retail buildings next occupying 25 percent of the space.

The buyer

The PincusCo database currently indicates that Hiu Ian Cheng owned at least four commercial properties in New York City with 88,718 square feet and a city-determined market value of $19 million. (Market value is typically about 50% of actual value.) The portfolio has $26.6 million in debt, borrowed from Bank of Hope and Shanghai Commercial Bank. Within the portfolio, the bulk, or 78 percent of the 88,718 square feet of built space are hotel properties, with mixed-use properties next occupying 22 percent of the space. The bulk, or 78 percent of the built space, is in Queens, with Manhattan next at 22 percent of the space.

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