Mendel Fleischman pays $6.3M for mixed-use in Williamsburg

Mendel Fleischman through the entity 285 Garden LLC paid $6.3 million to Robert Vigorito for the mixed-use building (K4) at 285 Metropolitan Avenue in Williamsburg, Brooklyn.
The deal closed on February 15, 2023 and was recorded on February 23, 2023.The property has 5,650 square feet of built space and 6,269 square feet of additional air rights for a total buildable of 11,904 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,123 and the price per buildable square foot is $533 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 Robert Vigorito was Robert Vigorito. The signatory for Mendel Fleischman was Mendel Fleischman.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Mendel Fleischman purchased two properties in two transactions for a total of $8.3 million and has no record it sold any properties over the past 24 months.
The seller Robert Vigorito had not purchased any other properties and had not sold any properties over the same time period. The 5,650-square-foot property generated revenue of $166,315 or $29 per square foot, according to the most recent income and expense figures.

The property

The 285 Metropolitan Avenue parcel has frontage of 40 feet and is 38 feet deep with a total lot size of 3,968 square feet. The lot is irregular. The zoning is M1-2/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.3 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 Williamsburg, the bulk, or 39 percent of the 49.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 25 percent of the space. In sales, Williamsburg has the 6th highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Williamsburg has 3.1 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the nine commercial properties representing 39,568 square feet of the 95,366 square feet. The two identified owners are Abraham Grunhut and Robert Vigorito.
On the tax block, there was one new building construction project filed totaling 17,985 square feet. It is a 19-unit, 17,985-square-foot R-2 building developed by Benjamin Stokes with plans filed May 24, 2017 and permitted June 1, 2018.

The majority, or 60 percent of the 30,135 square feet of built space are elevator buildings, with mixed-use buildings next occupying 26 percent of the space.

The seller

The PincusCo database currently indicates that Robert Vigorito owned at least one commercial property in New York City with 5,650 square feet and a city-determined market value of $1.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single mixed-use property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Mendel Fleischman owned at least six commercial properties in New York City with 33,287 square feet and a city-determined market value of $4.1 million. (Market value is typically about 50% of actual value.) The portfolio has $16.1 million in debt, with top three lenders as IceCap Group, Valley National Bank, and Joramel LLC respectively. Within the portfolio, the bulk, or 66 percent of the 33,287 square feet of built space are walkup properties, with mixed-use properties next occupying 19 percent of the space. The bulk, or 85 percent of the built space, is in Brooklyn, with Manhattan next at 15 percent of the space.

Direct link to Acris document. link