Juan Perez pays $3.1M for industrial in Bedford Stuyvesant

Juan Perez through the entity Persam 1081 LLC paid $3.1 million to Elliott L. Polinsky through the entity Madison Lumber Corp. for the industrial building (E1) at 866 Madison Street in Bedford Stuyvesant, Brooklyn.
The deal closed on April 21, 2023 and was recorded on April 27, 2023. The property has 5,000 square feet of built space and 4,999 square feet of additional air rights for a total buildable of 9,998 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $620 and the price per buildable square foot is $310 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 Elliott L. Polinsky was Elliott L. Polinsky. The signatory for Juan Perez was Juan A. Perez.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Juan A. Perez had purchased any other properties and sold two properties in two transactions for a total of $10 million over the past 24 months.
The seller Elliott L. Polinsky had not purchased any other properties and had not sold any properties over the same time period. The 5,000-square-foot property generated revenue of $89,199 or $18 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Bedford Stuyvesant has 5,000 square feet of built space and 4,999 square feet of additional air rights for a total buildable of 9,998 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 4,999 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 $487,000.

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 Bedford Stuyvesant, The bulk, or 35 percent of the 54.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has 2.5 times the average sales volume among other neighborhoods with $860.9 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Bedford Stuyvesant has 3.3 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 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 this tax block, PincusCo has identified the owners of 15 of the 21 commercial properties representing 122,101 square feet of the 145,947 square feet. The largest owner is Stephen Goldenberg, followed by Rami Esses and then Northeast Brooklyn Housing Development Corporation.
There are no active new building construction projects on this tax block.

The majority, or 63 percent of the 145,947 square feet of built space are walkup buildings, with elevator buildings next occupying 30 percent of the space.

The buyer

The PincusCo database currently indicates that Juan A. Perez owned at least three commercial properties with 43 residential units in New York City with 55,793 square feet. The portfolio has $24.1 million in debt, with top three lenders as Country Bank, Popular Bank, and Tri State Capital Bank respectively. Within the portfolio, the bulk, or 49 percent of the 55,793 square feet of built space are elevator properties, with walkup properties next occupying 29 percent of the space. The bulk, or 71 percent of the built space, is in Brooklyn, with Manhattan next at 29 percent of the space.

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