McDonald’s pays $6.6M for retail in Kensington

McDonald’s Corporation through the entity McDonald’s USA, LLC paid $6.6 million to Bryan Lazarus, Jack Margolis, Gayle Tapper, Roland G. Finkelman, Barbara Martineau Rosenthal, and Jody LaGreca for the retail building (K5) at 880 Coney Island Avenue in Kensington, Brooklyn. The sale was recorded in two transactions for $3.3 million each for 50 percent tenant-in-common interests.
The deal closed on May 19, 2023 and was recorded on June 1, 2023. The property has 2,890 square feet of built space and 29,484 square feet of additional air rights for a total buildable of 32,400 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $2,283 and the price per buildable square foot is $203 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 Bryan Lazarus, Jack Margolis, Gayle Tapper, Roland G. Finkelman, Barbara Martineau Rosenthal, and Jody LaGreca was Bryan Lazarus, Jack Margolis, Gayle Tapper, Roland G. Finkelman, Barbara Martineau Rosenthal, and Jody LaGreca. McDonald’s has leased this parcel since at least 1992. This sale was in two transactions of $3.3 million each, each for 50% TIC. PincusCo made the assumption that the two TICs combined is $6.6 million. The other CRFN is 2023000135147

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer McDonald’s Corporation had purchased any other properties and sold one property in one transaction for a total of $7.3 million over the past 24 months.
The seller Bryan Lazarus had not purchased any other properties and had not sold any properties over the same time period. The 2,890-square-foot property generated revenue of $88,492 or $31 per square foot, according to the most recent income and expense figures.

The property

The retail building in Kensington has 2,890 square feet of built space and 29,484 square feet of additional air rights for a total buildable of 32,400 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 166 feet deep with a total lot size of 16,200 square feet. The lot is irregular. The zoning is C8-2 which allows for up to 2 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $893,000.

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 Kensington, The bulk, or 44 percent of the 10.2 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 24 percent of the space. In sales, Kensington has the 37th highest sale turnover among other neighborhoods in Brooklyn with $94.7 million in sales volume in the last two years. For development, Kensington has had very little major development activity relative to other neighborhoods.It had 231,720 square feet of commercial and multi-family construction under development in the last two years, which represents 2 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 two of the 10 commercial properties representing 44,980 square feet of the 78,995 square feet. The two identified owners are Meridian Properties and Marie C. Lemaire Revocable Trust.
There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 78,995 square feet of built space are walkup buildings, with office buildings next occupying 17 percent of the space.

Direct link to Acris document. link