Meridian Properties pays $2.6M to Flagstar Bank for commercial in Bay Ridge

Meridian Properties through the entity Ct 5th Avenue LLC paid $2.6 million to Flagstar Bank through the entity Flagstar Bank, N.A. for the eight-unit office building (O8) at 8010 5th Avenue in Bay Ridge, Brooklyn. The expected use is cash flowing.
The deal closed on December 19, 2024 and was recorded on January 21, 2025. The property has 8,640 square feet of built space and 1,768 square feet of additional air rights for a total buildable of 10,402 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $305 and the price per buildable square foot is $254 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 seller bought the property on April 28, 2006, for $54.2 million. The signatory for Flagstar Bank was Brian Mioduszewski. The signatory for Meridian Properties was Michael Niamonitakis. The contract date was September 12, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Meridian Properties purchased three properties in three transactions for a total of $15.1 million and has no record it sold any properties over the past 24 months.
The seller Flagstar Bank had not purchased any other properties and had not sold any properties over the same time period.

The property

The office building with 8 residential units in Bay Ridge has 8,640 square feet of built space and 1,768 square feet of additional air rights for a total buildable of 10,402 square feet according to a PincusCo analysis of city data. The parcel has frontage of 42 feet and is 137 feet deep with a total lot size of 5,201 square feet. The lot is irregular. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.6 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 $2,530 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 Bay Ridge, The bulk, or 30 percent of the 21 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Bay Ridge has near average sales volume among other neighborhoods with $265 million in sales volume in the last two years and is the 24th highest in Brooklyn. For development, Bay Ridge has had very little major development activity relative to other neighborhoods.It had 295,888 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of one of the nine commercial properties representing 3,534 square feet of the 43,851 square feet. The identified owner is Dimou.
There are no active new building construction projects on this tax block.

The majority, or 80 percent of the 43,851 square feet of built space are mixed-use buildings, with office buildings next occupying 20 percent of the space.

The buyer

The PincusCo database currently indicates that Meridian Properties owned at least 110 commercial properties with 3,889 residential units in New York City with 3,711,257 square feet and a city-determined market value of $236.8 million. (Market value is typically about 50% of actual value.) The portfolio has $187.2 million in debt, with top three lenders as Signature Bank, Dime Community Bank, and Berkadia Commercial Mortgage respectively. Within the portfolio, the bulk, or 62 percent of the 3,711,257 square feet of built space are elevator properties, with walkup properties next occupying 38 percent of the space. They are all located in Brooklyn.

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