Kandarp Mehta pays $4.5M for industrial in East New York

Kandarp Mehta of JHC Fabrication through the entity Shivam Estates, LLC paid $4.5 million to Henry Calamari through the entity 595 Berriman Street Corp. for the industrial building (F5) at 595 Berriman Street and an adjacent parcel in East New York, Brooklyn
The deal closed on January 26, 2023 and was recorded on February 6, 2023. The two properties have 16,500 square feet of built space and 2,000 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $273 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 Henry Calamari was Henry Calamari. The signatory for Kandarp Mehta was Kandarp Mehta. Kandarp Mehta is president of JHC Fabrication, which fabricates countertops.  The seller, Henry Calamari, was the president and CEO of JHC Fabrications, the same company with a slightly different spelling. It appears Mehta acquired control of the company and now has acquired the building in which the company operates.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 595 Berriman Street.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Kandarp Mehta had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Henry Calamari had not purchased any other properties and had not sold any properties over the same time period. Out of the two properties, one with a total of 16,500 square feet of built space generated revenue of $240,073 per year.

The property

The 595 Berriman Street parcel has frontage of 140 feet and is 100 feet deep with a total lot size of 14,000 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $957,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have 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 New York, the bulk, or 41 percent of the 44.6 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has 2.5 times the average sales volume among other neighborhoods with $849.9 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, East New York is the 10th most active neighborhood among other neighborhoods. It had 4.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 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 the tax block of 595 Berriman Street, PincusCo has identified the owners of two of the 15 commercial properties representing 11,400 square feet of the 89,870 square feet. The two identified owners are Interstate Waste Services and Charles S. Henry.
There are no active new building construction projects on this tax block.

The majority, or 82 percent of the 89,870 square feet of built space are industrial buildings, with office buildings next occupying 18 percent of the space.

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