Jackson Group pays $4.6M to Parkland Group for retail in Sheepshead Bay

The Chehebar family’s Jackson Group through the entity 1417 Avenue U LLC paid $4.6 million to Parkland Group through the entity 1417 Avenue Associates LLC for the retail building (K1) at 1417 Avenue U in Sheepshead Bay, Brooklyn.
The deal closed on September 6, 2023 and was recorded on September 11, 2023. The property has 9,346 square feet of built space and 11,454 square feet of additional air rights for a total buildable of 20,750 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $492 and the price per buildable square foot is $221 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 Parkland Group was Steven Brauser. The signatory for Jackson Group was Gabriel Chehebar. The contract date was June 27, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Jackson Group purchased five properties in four transactions for a total of $30.2 million and sold three properties in three transactions for a total of $18.9 million over the past 24 months.
The seller Parkland Group had not purchased any other properties and sold one property in one transaction for a total of $1.4 million over the same time period.

The property

The retail building in Sheepshead Bay has 9,346 square feet of built space and 11,454 square feet of additional air rights for a total buildable of 20,750 square feet according to a PincusCo analysis of city data. The parcel has frontage of 120 feet and is 145 feet deep with a total lot size of 16,600 square feet. The lot is irregular. 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 $3.3 million.

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 received $150 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 $1 million on this tax lot.

The neighborhood

In Sheepshead Bay, The bulk, or 43 percent of the 26.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Sheepshead Bay has 1.3 times the average sales volume among other neighborhoods with $482.9 million in sales volume in the last two years and is the 16th highest in Brooklyn. For development, Sheepshead Bay has had very little major development activity relative to other neighborhoods.It had 751,184 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the five commercial properties representing 12,640 square feet of the 32,546 square feet. The identified owner is Innab Nawal.
There are no active new building construction projects on this tax block.

The majority, or 39 percent of the 32,546 square feet of built space are walkup buildings, with mixed-use buildings next occupying 32 percent of the space.

The buyer

The PincusCo database currently indicates that Jackson Group owned at least seven commercial properties in New York City with 200,392 square feet and a city-determined market value of $38.4 million. (Market value is typically about 50% of actual value.) The portfolio has $27.8 million in debt, borrowed from Signature Bank and Safra National Bank. Within the portfolio, the bulk, or 53 percent of the 200,392 square feet of built space are retail properties, with mixed-use properties next occupying 47 percent of the space. The bulk, or 60 percent of the built space, is in Brooklyn, with Queens next at 40 percent of the space.

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