Meridian Properties pays $5.7M to John Vorvolakos for 35-unit walkup in Bay Ridge

Meridian Properties through the entity Metatlantic Realty Associates L.P. paid $5.7 million to John Vorvolakos through the entity 571 Ovington Avenue, LLC for the 35-unit residential walkup building (C1) at 571 Ovington Avenue in Bay Ridge, Brooklyn.
The deal closed on September 28, 2022 and was recorded on October 3, 2022. The property has 27,548 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $206 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 John Vorvolakos was John Vorvolakos. The signatory for Meridian Properties was Michael Niamonitakis.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Meridian Properties purchased 10 properties in nine transactions for a total of $69.3 million and sold one property in one transaction for a total of $6.4 million over the past 24 months.
The seller John Vorvolakos had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes John Vorvolakos, head officer and Jennifer Irizarry, site manager. The business entity is 571 Ovington Ave. Llc. The 27,548-square-foot property generated revenue of $543,776 or $20 per square foot, according to the most recent income and expense figures.

The property

The 571 Ovington Avenue parcel has frontage of 71 feet and is 126 feet deep with a total lot size of 9,000 square feet. The zoning is R4-1 which allows for up to 0.75 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.6 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 block

On this tax block, PincusCo has identified the owners of three of the 26 commercial properties representing 130,859 square feet of the 308,820 square feet. The largest owner is Hussein Ismail, followed by Meridian Properties and then Aaron Jungreis.
there are no active new building construction projects on this tax block.

The majority, or 61 percent of the 308,820 square feet of built space are walkup buildings, with elevator buildings next occupying 23 percent of the space.

The buyer

The PincusCo database currently indicates that Meridian Properties owned at least 108 commercial properties in New York City with 3,526,308 square feet and a city-determined market value of $189.8 million. (Market value is typically about 50% of actual value.) The portfolio has $99.6 million in debt, with top three lenders as Signature Bank, Dime Community Bank, and New York Community Bank respectively. Within the portfolio, the bulk, or 60 percent of the 3,526,308 square feet of built space are elevator properties, with walkup properties next occupying 39 percent of the space. They are all located in Brooklyn.

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