Jane Love pays $2.7M for industrial in Bushwick, across street from $257M 123 Melrose

Jane Love through the entity Wyatt And Billy, LLC paid $2.7 million to Cheryl Weiss through the entity Idared LLC for the midblock industrial building at 106 Melrose Street in Bushwick, Brooklyn and the midblock industrial building at 108 Melrose Street in Bushwick, Brooklyn.
The deal closed on March 21, 2022 and was recorded on April 7, 2022.

The two properties have 8,750 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $308 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 Cheryl Weiss was John Weiss. The signatory for Jane Love was Jane Love.

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 106 Melrose Street.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Jane Love had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Cheryl Weiss had not purchased any other properties and had not sold any properties over the same time period. The two properties with a total of 8,750 square feet of built space generated revenue of $185,246 per year or $21 per square foot. The sale price per square foot was $309.

The property

The 106 Melrose Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 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 $426,000.

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 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 Bushwick, the bulk, or 32 percent of the 51.4 million square feet of commercial built space are 1-4 family buildings, with residential walkup buildings next occupying 29 percent of the space. In sales, Bushwick has 3.3 times the average sales volume among other neighborhoods with $910.2 million in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.2 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Brooklyn. It had 1.1 million 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. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On the tax block of 106 Melrose Street, PincusCo has identified the owners of eight of the 27 commercial properties representing 44,440 square feet of the 120,054 square feet. The largest owner is Mendel Gold, followed by Meir D. Tabak and then Leopold Kaufman. There are two active new building construction projects totaling 6,421 square feet. The largest is a six-unit, 4,307-square-foot R-2 building developed by Solomon Sandel with plans filed July 13, 2017 and it has not been permitted yet. The second largest is a 2,114-square-foot S-2 building developed by Itamar Davidi with plans filed November 5, 2015 and it has not been permitted yet.

The majority, or 63 percent of the 131,206 square feet of built space are industrial buildings, with residential walkup buildings next occupying 29 percent of the space.

Surrounding

Within a 400-foot radius of 106 Melrose Street, Pincusco identified seven commercial real estate items of interests occurred over the past 24 months.
Of those seven items, two were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $299,963 and one permit with a total initial cost of $461,000. The most recent of these two items was the filing on January 27, 2022 for a 62,761-square-foot R-2 building with 64 residential units at 600 Bushwick Avenue.
Of those seven items, two were sales above $5 million totaling $272.8 million. The most recent of the two was Atlas Capital Group which bought the 384,983-square-foot, 469-unit rental (D6) on 123 Melrose Street for $256.8 million from All Year Management on December 20, 2021.
Of those seven items, three were loans above $5 million totaling $318.9 million. The most recent of the three was Atlas Capital Group which borrowed $305.9 million from Square Mile Capital Management secured by the 388,023-square-foot, 469-unit rental (D6) on 123 Melrose Street and one other property on December 20, 2021.

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