Junaid Zahid pays $4.6M for retail in Bedford Stuyvesant

Junaid Zahid through the entity 507 N LLC paid $4.6 million to Constance Spiliotes through the entity Delta Kappa Realty Corp. for the retail building (K1) at 113 Herkimer Street in Bedford Stuyvesant, Brooklyn.
The deal closed on June 30, 2023 and was recorded on July 6, 2023. The property has 4,600 square feet of built space and 17,902 square feet of additional air rights for a total buildable of 22,512 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,000 and the price per buildable square foot is $204 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 Constance Spiliotes was Constance Spiliotes. The signatory for Junaid Zahid was Junaid Zahid.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Junaid Zahid had purchased any other properties and has no record he sold any properties over the past 24 months.
The seller Constance Spiliotes had not purchased any other properties and had not sold any properties over the same time period. The 4,600-square-foot property generated revenue of $285,660 or $62 per square foot, according to the most recent income and expense figures.

The property

The retail building in Bedford Stuyvesant has 4,600 square feet of built space and 17,902 square feet of additional air rights for a total buildable of 22,512 square feet according to a PincusCo analysis of city data. The parcel has frontage of 48 feet and is 100 feet deep with a total lot size of 5,360 square feet. The lot is irregular. The zoning is C4-5D which allows for up to 4.2 times floor area ratio (FAR) for commercial and up to 4.2 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.4 million.

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 received $25 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 $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 2.8 times the average sales volume among other neighborhoods with $984.5 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Bedford Stuyvesant has 3.2 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3.3 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.

The block

On this tax block, PincusCo has identified the owners of three of the 17 commercial properties representing 69,513 square feet of the 149,418 square feet. The largest owner is Yotam Michaeli, followed by Metropolitan Realty Group and then Joel Jacob.
On the tax block, there was one new building construction project filed totaling 63,113 square feet. It is a 57-unit, 63,113 square-foot residential (R-2) building submitted by BRP Companies and filed by Marshall Meredith with plans filed June 4, 2013 and permitted July 11, 2014.

The majority, or 41 percent of the 149,418 square feet of built space are retail buildings, with elevator buildings next occupying 39 percent of the space.

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