Jeff Sutton’s Wharton Properties pays $6.7M for retail in East Flatbush

Jeff Sutton’s Wharton Properties through the entity 506 Utica Ave LLC paid $6.7 million to Samuel Frankel through the entity Utica Management Corporation for the retail building (K1) at 506 Utica Avenue in East Flatbush, Brooklyn.
The deal closed on March 16, 2023 and was recorded on March 22, 2023. The property has 9,000 square feet of built space and 38,880 square feet of additional air rights for a total buildable of 48,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $744 and the price per buildable square foot is $139 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 February 9, 2011, for $3.5 million. The signatory for Samuel Frankel was Samuel Frankel. The signatory for Wharton Properties was Jeff Sutton.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Wharton Properties paid $2.8 million for a bank property in Staten Island and sold five properties in four transactions for a total of $53.9 million over the past 24 months.
The seller Samuel Frankel had not purchased any other properties and had not sold any properties over the same time period. The 9,000-square-foot property generated revenue of $250,943 or $28 per square foot, according to the most recent income and expense figures.

The property

The 506 Utica Avenue parcel has frontage of 210 feet and is 114 feet deep with a total lot size of 24,000 square feet. 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 $1.7 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 received $1,780 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 $5 million on this tax lot.

The neighborhood

In East Flatbush, the bulk, or 32 percent of the 42.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 23 percent of the space. In sales, East Flatbush has had very little sales volume relative to other neighborhoods with $207.2 million in sales volume in the last two years. For development, East Flatbush has 2.3 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Brooklyn. It had 2.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

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