Metropolitan Commercial Bank pays $13.2M for corner retail in Borough Park

Metropolitan Commercial Bank through the entity Mcb 5102-13th Ave Brooklyn LLC paid $13.2 million to Norse Realty Group through the entity Park Nova Realty Corp for the mixed-use retail building (K1) at 5102 13th Avenue in Borough Park, Brooklyn.
The deal closed on July 14, 2022 and was recorded on July 20, 2022. The property has 15,800 square feet of built space and 8,500 square feet of additional air rights for a total buildable of 24,300 square feet according to PincusCo analysis of city data. The sale price per built square foot is $835 and the price per buildable square foot is $543 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 Norse Realty Group was David J. Levine. The signatory for Metropolitan Commercial Bank was Michael A. Guarino.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Metropolitan Commercial Bank had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Norse Realty Group had not purchased any other properties and sold one property in one transaction for a total of $5.7 million over the same time period. The 15,800-square-foot property generated revenue of $572,824 or $36 per square foot, according to the most recent income and expense figures.

The property

The 5102 13th Avenue parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 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 $4.4 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

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 Borough Park, the bulk, or 23 percent of the 23.3 million square feet of commercial built space are specialty buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Borough Park has had very little sales volume relative to other neighborhoods with $216.8 million in sales volume in the last two years. For development, Borough Park has 1.2 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Brooklyn. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There were four 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 one of the 21 commercial properties representing 25,850 square feet of the 139,847 square feet. The identified owner is United States Postal Service. There are no active new building construction projects on this tax block.

The majority, or 40 percent of the 128,383 square feet of built space are mixed-use buildings, with retail buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Norse Realty Group owned at least one commercial property in New York City with 23,248 square feet and a city-determined market value of $4.5 million. (Market value is typically about 50% of actual value.) The portfolio has $7.2 million in debt, borrowed from Signature Bank. The portfolio consists of at least a single mixed-use property. It is located in Queens.

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