MedProperties, Physicians Realty Trust pay $81.5M to Marcal Group for medical center in Bensonhurst

MedProperties Realty Advisors and Physicians Realty Trust through the entity Mp Iv Doc Brooklyn Mob Inc. paid $81.5 million to the Marcal Group through the entity Bp Group De LLC for the medical building (I9) at 6010 Bay Parkway in Bensonhurst, Brooklyn.
The deal closed on September 9, 2022 and was recorded on September 23, 2022. The property has 144,764 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $562 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 Marcal Group was Mark Caller and Robert Kodsi. The signatory for MedProperties Realty Advisors and Physicians Realty Trust was Lynn A. Brown. The Real Deal reported on the sale earlier this month, noting that Mark Caller developed the property, the Calko Medical Center.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer MedProperties Realty Advisors had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Marcal Group had not purchased any other properties and had not sold any properties over the same time period.

The property

The 6010 Bay Parkway parcel has frontage of 200 feet and is 100 feet deep with a total lot size of 20,000 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $21.4 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

For the tax lot building, it received its initial certificate of occupancy on April 18, 2013. 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 Bensonhurst, the bulk, or 34 percent of the 16.5 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Bensonhurst has had very little sales volume relative to other neighborhoods with $210.5 million in sales volume in the last two years. For development, Bensonhurst has had very little major development activity relative to other neighborhoods.It had 375,094 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.

The block

There are no active new building construction projects on this tax block.

All properties are specialty.

The seller

The PincusCo database currently indicates that Marcal Group owned at least eight commercial properties in New York City with 250,098 square feet and a city-determined market value of $22 million. (Market value is typically about 50% of actual value.) The portfolio has $79.5 million in debt, with top three lenders as Valley National Bank, CIT Bank, and Israel Discount Bank respectively. Within the portfolio, the bulk, or 95 percent of the 250,098 square feet of built space are office properties, with mixed-use properties next occupying 5 percent of the space. The bulk, or 59 percent of the built space, is in Bronx, with Brooklyn next at 36 percent of the space.

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