Lee Fung Fong pays $6.6M for industrial in East Williamsburg

Lee Fung Fong through the entity Ideal Palace LLC paid $6.6 million to Thomas Ng through the entity Wing Sun Paper Supply Corp. for industrial building at 179 Stewart Avenue in East Williamsburg, Brooklyn.
The deal closed on May 13, 2022 and was recorded on June 21, 2022. The property has 15,700 square feet of built space and 15,749 square feet of additional air rights for a total buildable of 31,498 square feet according to PincusCo analysis of city data. The sale price per built square foot is $421 and the price per buildable square foot is $209 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 Thomas Ng was Thomas Ng. The signatory for Lee Fung Fong was Lee Fung Fong.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Lee Fung Fong had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Thomas Ng purchased one properties in one transactions for a total of $2.9 million and had not sold any properties over the same time period. The 15,700-square-foot property generated revenue of $279,432 or $18 per square foot, according to the most recent income and expense figures.

The property

The 179 Stewart Avenue parcel has frontage of 99 feet and is 158 feet deep with a total lot size of 15,749 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. 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 $5 million on this tax lot.

The neighborhood

In East Williamsburg, the majority, or 58 percent of the 17.8 million square feet of commercial built space are industrial buildings, with residential walkup buildings next occupying 9 percent of the space. In sales, East Williamsburg has 1.2 times the average sales volume among other neighborhoods with $335.5 million in sales volume in the last two years and is the 12th highest in Brooklyn. For development, East Williamsburg has 1.4 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 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the five commercial properties representing 20,000 square feet of the 72,279 square feet. The identified owner is Xi Ping Xia. There are no active new building construction projects on this tax block.

All properties are industrial.

The seller

The PincusCo database currently indicates that Thomas Ng owned at least one commercial property with 7,822 square feet and a city-determined market value of $363,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single mixed-use property. It is located in Queens.

Surrounding

Within a 400-foot radius of 179 Stewart Avenue, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, one was for major renovation including a certificate of occupancy change. It was a permit issued on June 21, 2021 for the $800,000 renovation of 10,000-square-foot F-1 building with zero residential units at 500 Stagg Street.
One of those three items was a sale which Xi Ping Xia bought the 20,000-square-foot, two-unit industrial (E1) on 150 Varick Avenue for $10 million from Ingraham Realty Properties on March 17, 2021.
One of those three items was a loan which Xi Ping Xia borrowed $7.5 million from Flushing Bank secured by the 20,000-square-foot, two-unit industrial (E1) on 150 Varick Avenue on March 17, 2021.

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