Home Depot pays $6.5M to Bridges Development for retail in Maspeth

Home Depot through the entity Home Depot U.S.A., Inc. paid $6.5 million to Bridges Development Group through the entity Maurice Avenue Shoppes LLC for the retail building (K1) at 59-25 Maurice Avenue in Maspeth, Queens.
The deal closed on April 27, 2023 and was recorded on May 5, 2023. The property has 7,891 square feet of built space and 1,384 square feet of additional air rights for a total buildable of 9,232 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $823 and the price per buildable square foot is $704 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 22, 2020, for $10 million. The signatory for Bridges Development Group was Michael Berfield. The signatory for Home Depot was John Chescavage Sr.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Home Depot had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Bridges Development Group purchased two properties in two transactions for a total of $25.1 million and had not sold any properties over the same time period.

The property

The retail building in Maspeth has 7,891 square feet of built space and 1,384 square feet of additional air rights for a total buildable of 9,232 square feet according to a PincusCo analysis of city data. The parcel has frontage of 111 feet and is 84 feet deep with a total lot size of 9,232 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 $570,000.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 23, 2020. On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 19,555 square feet. The largest is a new building project for a 11,994 square-foot M building submitted by Michael Berfield with plans filed November 1, 2019 and permitted November 17, 2020. The second largest is a new building project for a 7,561 square-foot M building submitted by Michael Berfield with plans filed November 1, 2019 and permitted November 17, 2020.

The neighborhood

In Maspeth, The majority, or 73 percent of the 22.3 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 8 percent of the space. In sales, Maspeth has 2.1 times the average sales volume among other neighborhoods with $756.6 million in sales volume in the last two years and is the 3rd highest in Queens. For development, Maspeth has 1.8 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Queens. It had 1.9 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.

The block

On this tax block, PincusCo has identified the owners of eight of the 12 commercial properties representing 187,411 square feet of the 472,597 square feet. The largest owner is Sitex Group, followed by Michael Berfield and then LIRR.
On the tax block, there were two new building construction projects totaling 19,555 square feet. The largest is a 11,994 square-foot mercantile (M) building submitted by Michael Berfield with plans filed November 1, 2019 and permitted November 17, 2020. The second largest is a 7,561 square-foot mercantile (M) building submitted by Michael Berfield with plans filed November 1, 2019 and permitted November 17, 2020.

The majority, or 68 percent of the 472,597 square feet of built space are industrial buildings, with retail buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that Bridges Development Group owned at least two commercial properties in New York City with 380,805 square feet and a city-determined market value of $74.8 million. (Market value is typically about 50% of actual value.) The portfolio has $104.1 million in debt, borrowed from Wells Fargo and Israel Discount Bank. Within the portfolio, all identified are retail properties. They are all located in Brooklyn.

Direct link to Acris document. link