Lotus, Roben Rabanipour pay $15.2M to Bokhour Family for retail in East New York

Lotus Management and Roben Rabanipour through the entity 1110 Pennsylvania Ave Realty LLC paid $15.2 million to the Bokhour family through the entity 1110 Pennsylvania LLC for the retail building (K6) at 1110 Pennsylvania Avenue in East New York, Brooklyn.
The deal closed on May 31, 2023 and was recorded on June 9, 2023. The property has 25,170 square feet of built space and 24,206 square feet of additional air rights for a total buildable of 49,400 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $603 and the price per buildable square foot is $307 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 the Bokhour family was Edward Bokhour and Alfred Bokhour. The signatory for Lotus Management and Roben Rabanipour was Rahul Nabe and Roben Rabanipour.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Lotus Management purchased one property in one transaction for a total of $2.3 million and has no record it sold any properties over the past 24 months.
The seller Bokhour Family had not purchased any other properties and sold three properties in three transactions for a total of $27.7 million over the same time period. The 25,170-square-foot property generated revenue of $1.2 million or $48 per square foot, according to the most recent income and expense figures.

The property

The retail building in East New York has 25,170 square feet of built space and 24,206 square feet of additional air rights for a total buildable of 49,400 square feet according to a PincusCo analysis of city data. The parcel has frontage of 290 feet and is 190 feet deep with a total lot size of 49,400 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 $10.8 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 $3,050 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 East New York, The bulk, or 40 percent of the 44.5 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 2.4 times the average sales volume among other neighborhoods with $853.2 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, East New York is the 5th most active neighborhood among other neighborhoods. It had 4.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of one of the five commercial properties representing 8,640 square feet of the 47,188 square feet. The identified owner is Rami Macanian.
There are no active new building construction projects on this tax block.

The majority, or 72 percent of the 47,188 square feet of built space are retail buildings, with industrial buildings next occupying 28 percent of the space.

The buyer

The PincusCo database currently indicates that Lotus Management owned at least two commercial properties in New York City with 12,500 square feet and a city-determined market value of $2.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are retail properties. The bulk, or 52 percent of the built space, is in Queens, with Bronx next at 48 percent of the space.

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