Jay Group buys fifth Speedway gas station, this one in East Williamsburg for $9.8M

Jacob Kohn’s Jay Group through the entity 808 Metropolitan Realty LLC paid $9.8 million to Speedway through the entity Speedway LLC for the gas station (G5) at 808 Metropolitan Avenue in East Williamsburg, Brooklyn. This is the fifth Speedway that Jay Group has purchased from the seller. Most already had new construction projects, but this one does not, according to a review by PincusCo.
The deal closed on June 28, 2022 and was recorded on July 13, 2022. The property has a total buildable of 25,250 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $386 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 Speedway was Beth A. Hunter. The signatory for Jay Group was Jacob Kohn.

Prior sales and revenue

Prior to this transaction, the seller Speedway had not purchased any other properties and sold four properties in four transactions for a total of $42.6 million over the same time period.

The property

The 808 Metropolitan Avenue parcel has frontage of 140 feet and is 134 feet deep with a total lot size of 12,625 square feet. The lot is irregular. The zoning is C8-2 which allows for up to 2 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $1.1 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 East Williamsburg, the majority, or 62 percent of the 16.6 million square feet of commercial built space are industrial buildings, with residential walkup buildings next occupying 10 percent of the space. In sales, East Williamsburg has 1.5 times the average sales volume among other neighborhoods with $473.5 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, East Williamsburg has 1.4 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Brooklyn. It had 1.4 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 11 of the 30 commercial properties representing 65,640 square feet of the 137,004 square feet. The largest owner is Anthony Gurino, followed by Shaindy Schwartz and then Joel Schwartz. There are four active new building construction projects totaling 89,557 square feet. The largest is a nine-unit, 10,100-square-foot R-2 building developed by Catherine Attri with plans filed July 16, 2012 and it has not been permitted yet.The second largest is a 22-unit, 14,982-square-foot R-2 building developed by Anthony Losquadro with plans filed December 23, 2016 and permitted December 5, 2018.

The majority, or 61 percent of the 141,129 square feet of built space are residential walkup buildings, with industrial buildings next occupying 14 percent of the space.

The buyer

The PincusCo database currently indicates that Jacob Kohn owned at least nine commercial properties in New York City with 253,196 square feet and a city-determined market value of $58.6 million. (Market value is typically about 50% of actual value.) The portfolio has $109.8 million in debt, with top three lenders as Argentic Investment Management, MF1 Capital, and Prophet Capital Reit respectively. Within the portfolio, the bulk, or 89 percent of the 253,196 square feet of built space are elevator properties, with industrial properties next occupying 8 percent of the space. The bulk, or 55 percent of the built space, is in Manhattan, with Brooklyn next at 45 percent of the space.

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