Mohammed Elsayed pays $2.3M to Elysee Investment for retail in Sunset Park

Mohammed Elsayed through the entity Metro 5022 LLC paid $2.3 million to Elysee Investment Corp through the entity Metropolitan Management LLC for the retail building (K4) at 5022 5th Avenue in Sunset Park, Brooklyn. This is the first Elysee Investment sale PincusCo has tracked in at least two years.
The deal closed on December 14, 2023 and was recorded on December 26, 2023. The property has 1,800 square feet of built space and 3,598 square feet of additional air rights for a total buildable of 5,397 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,274 and the price per buildable square foot is $425 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 Elysee Investment Corp was Avraham Dishi. The signatory for Mohammed Elsayed was Mohammed Elsayed. The contract date was October 26, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Mohammed Elsayed purchased one property in one transactions for a total of $2.2 million and has no record it sold any properties over the past 24 months.
The seller Elysee Investment Corp purchased 22 properties in 14 transactions for a total of $175.2 million and had not sold any properties over the same time period.

The property

The retail building in Sunset Park has 1,800 square feet of built space and 3,598 square feet of additional air rights for a total buildable of 5,397 square feet according to a PincusCo analysis of city data. The parcel has frontage of 18 feet and is 100 feet deep with a total lot size of 1,799 square feet. The zoning is C4-3A which allows for up to 3 times floor area ratio (FAR) for commercial and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $557,000.

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 $600 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 Sunset Park, The bulk, or 30 percent of the 34 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 24 percent of the space. In sales, Sunset Park has 1.5 times the average sales volume among other neighborhoods with $505.1 million in sales volume in the last two years and is the 15th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.It had 29,480 square feet of commercial and multi-family construction under development in the last two years, which represents 0.09 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 14 commercial properties representing 23,880 square feet of the 99,404 square feet. The largest owner is Yuco Management, followed by Elysee Investment Company and then Alessandro Pirozzi.
There are no active new building construction projects on this tax block.

The majority, or 54 percent of the 99,404 square feet of built space are mixed-use buildings, with walkup buildings next occupying 37 percent of the space.

The seller

The PincusCo database currently indicates that Elysee Investment Corp owned at least 28 commercial properties with 783 residential units in New York City with 791,066 square feet and a city-determined market value of $97.8 million. (Market value is typically about 50% of actual value.) The portfolio has $176.9 million in debt, with top three lenders as Morgan Stanley, Bank of America, and Flushing Bank respectively. Within the portfolio, the bulk, or 53 percent of the 791,066 square feet of built space are elevator properties, with walkup properties next occupying 43 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Mohammed Elsayed owned at least one commercial property with two residential units in New York City with 4,347 square feet and a city-determined market value of $1.8 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.

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