KP Developers pays $2.9M to Henry Grunbaum for industrial in Bushwick

KP Developers through the entity Bushwick Group 26 LLC paid $2.9 million to Henry Grunbaum through the entity Bushwick BH LLC for the industrial building (G3) at 1508 Bushwick Avenue in Bushwick, Brooklyn.
The deal closed on June 6, 2024 and was recorded on July 10, 2024. The property has 340 square feet of built space and 9,699 square feet of additional air rights for a total buildable of 9,999 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $285 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 April 24, 2007, for $1.2 million. The signatory for Henry Grunbaum was Rifka Grunbaum. The contract date was August 30, 2023. Traded NY reported the buyer was KP Developers led by Aaron Kahen and Don Hakim.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer KP Developers purchased three properties in three transactions for a total of $7.3 million and sold two properties in one transaction for a total of $5 million over the past 24 months.
The seller Henry Grunbaum had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Bushwick has 340 square feet of built space and 9,699 square feet of additional air rights for a total buildable of 9,999 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,999 square feet. The zoning is C8-1 which allows for up to 1 times floor area ratio (FAR) for commercial. The city-designated market value for the property in 2022 is $722,000. The most recent loan totaled 0.0 and was provided by Moko Realty Group LLC on February 25, 2022.

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 Bushwick, The bulk, or 44 percent of the 33.6 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 2.3 times the average sales volume among other neighborhoods with $608.2 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Bushwick has 1.2 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Brooklyn. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 12 commercial properties representing 62,763 square feet of the 98,143 square feet. The largest owner is Shinda Management, followed by Jacob Friedman and then Henry Grunbaum.
On the tax block, there was one new building construction project filed totaling 5,990 square feet. It is a nine-unit, 5,990 square-foot residential (R-2) building submitted by Chesky Weiss with plans filed February 23, 2022 and it has not been permitted yet.

The majority, or 55 percent of the 98,143 square feet of built space are elevator buildings, with walkup buildings next occupying 36 percent of the space.

The seller

The PincusCo database currently indicates that Henry Grunbaum owned at least five commercial properties with 12 residential units in New York City with 23,280 square feet and a city-determined market value of $2.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 52 percent of the 23,280 square feet of built space are industrial properties, with walkup properties next occupying 48 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Kp Developers owned at least 20 commercial properties with 170 residential units in New York City with 157,279 square feet and a city-determined market value of $31.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 45 percent of the 157,279 square feet of built space are elevator properties, with walkup properties next occupying 24 percent of the space. The bulk, or 50 percent of the built space, is in Manhattan, with Brooklyn next at 36 percent of the space.

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