Jie Chen pays $2.4M for industrial in Sunset Park

Jie Chen through the entity Leo International NY, LLC paid $2.4 million to Hon Y. Leung through the entity 5410 Slope Holding, LLC for the industrial building (E1) at 5410 3rd Avenue in Sunset Park, Brooklyn.
The deal closed on April 16, 2024 and was recorded on May 2, 2024. The property has 7,160 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $328 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 January 2, 2015, for $760,000. The signatory for Hon Y. Leung was Hon Y. Leung. The signatory for Jie Chen was Jie Chen. The contract date was April 16, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Jie Chen had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Hon Y. Leung had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Sunset Park has 7,160 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 35 feet and is 95 feet deep with a total lot size of 3,332 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $548,000.

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

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 Sunset Park, The bulk, or 30 percent of the 34 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 24 percent of the space. In sales, Sunset Park has 1.4 times the average sales volume among other neighborhoods with $398.2 million in sales volume in the last two years and is the 18th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.It had 69,135 square feet of commercial and multi-family construction under development in the last two years, which represents 0.20 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 26 commercial properties representing 33,297 square feet of the 114,342 square feet. The largest owner is S.W. Management, followed by Penelope Georgakopoulos and then Lily Lum.
On the tax block, there was one new building construction project filed totaling 5,988 square feet. It is a eight-unit, 5,988 square-foot residential (R-2) building submitted by Chao Yuan with plans filed October 22, 2019 and it has not been permitted yet.

The majority, or 66 percent of the 114,342 square feet of built space are walkup buildings, with industrial buildings next occupying 15 percent of the space.

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