Meridian Properties pays $6M for residential elevator in Bensonhurst

Meridian Properties through the entity Epsilon 19th 1C LLC paid $6 million to the entity 7920 19th Avenue LLC for the 48-unit residential elevator building (D1) at 7920 19th Avenue in Bensonhurst, Brooklyn. The expected use is cash flowing.
The deal closed on August 23, 2024 and was recorded on September 20, 2024. The property has 48,000 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $125 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 the seller was Osman Semen. The signatory for Meridian Properties was Michael B. Niamonitakis. The contract date was February 29, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Meridian Properties purchased five properties in five transactions for a total of $29.8 million and has no record it sold any properties over the past 24 months.
The seller Osman Semen 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 Osman Semen, head officer and Hamit Semen, officer. The business entity is 7920 19th Avenue Llc.

The property

The residential elevator building with 48 residential units in Bensonhurst has 48,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.5 million. The property has 47 rent regulated units according to city tax records from 2023.

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 two housing violations and $150 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 block

On this tax block, PincusCo has identified the owners of one of the two commercial properties representing 45,100 square feet of the 93,100 square feet. The identified owner is Dimitri Vlahakis.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 93,100 square feet of built space are elevator buildings, with walkup buildings next occupying 48 percent of the space.

The buyer

The PincusCo database currently indicates that Meridian Properties owned at least 109 commercial properties with 3,841 residential units in New York City with 3,663,257 square feet and a city-determined market value of $234.3 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 61 percent of the 3,663,257 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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