Monarch Realty pays $11.3M for office in Boerum Hill

Monarch Realty Holdings through the entity 340 Livingston Development LLC paid $11.3 million to a group of owners concentrated in Great Neck including Hesky Haim and Continental Equities Group through the entity 340 Livingston Group LLC (and others) for the office building (O5) at 340 Livingston Street in Boerum Hill, Brooklyn.
The deal closed on March 30, 2023 and was recorded on April 4, 2023. The property has 16,570 square feet of built space and 18,703 square feet of additional air rights for a total buildable of 35,290 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $681 and the price per buildable square foot is $320 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 January 7, 2014, for $8.3 million. The signatory for Hesky Haim and Continental Equities Group was Isaac Saidmehr. The signatory for Monarch Realty Holdings was Farzad Shahery.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Monarch Realty Holdings purchased two properties in two transactions for a total of $15.7 million and sold one property in one transaction for a total of $8 million over the past 24 months.
The seller Hesky Haim had not purchased any other properties and had not sold any properties over the same time period. The 16,570-square-foot property generated revenue of $649,830 or $39 per square foot, according to the most recent income and expense figures.

The property

The office building in Boerum Hill has 16,570 square feet of built space and 18,703 square feet of additional air rights for a total buildable of 35,290 square feet according to a PincusCo analysis of city data. The parcel has frontage of 54 feet and is 65 feet deep with a total lot size of 3,529 square feet. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.1 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 $2,275 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 Boerum Hill, The bulk, or 32 percent of the 9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 16 percent of the space. In sales, Boerum Hill has near average sales volume among other neighborhoods with $330.9 million in sales volume in the last two years and is the 23rd highest in Brooklyn. For development, Boerum Hill has 1.2 times the average amount of major developments relative to other neighborhoods and is the 16th 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 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 709,739 square feet of the 734,348 square feet. The largest owner is Yitzchok Katz, followed by Steiner NYC and then Munzer Elayyan.
On the tax block, there were three new building construction projects totaling 732,096 square feet. The largest is a 750-unit, 627,640 square-foot residential (R-2) building submitted by Steiner NYC and filed by Douglas Steiner with plans filed June 27, 2012 and permitted July 25, 2014. The second largest is a 105-unit, 104,456 square-foot residential (R-2) building submitted by Yitzchok Katz and filed by Yitzchok Katz with plans filed January 26, 2023 and it has not been permitted yet.

The majority, or 90 percent of the 734,348 square feet of built space are elevator buildings, with walkup buildings next occupying 6 percent of the space.

The seller

The PincusCo database currently indicates that Continental Equities Group owned at least three commercial properties with three residential units in New York City with 54,881 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $18.2 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 90 percent of the 54,881 square feet of built space are office properties, with mixed-use properties next occupying 10 percent of the space. They are all located in Manhattan.
The PincusCo database currently indicates that Hesky Haim owned at least two commercial properties with one residential unit in New York City with 16,612 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $6.5 million in debt, borrowed from Bank of Hope. Within the portfolio, the bulk, or 52 percent of the 16,612 square feet of built space are office properties, with mixed-use properties next occupying 48 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Monarch Realty Holdings owned at least eight commercial properties with 206 residential units in New York City with 166,241 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $48.2 million in debt, with top three lenders as Sterling National Bank, First National Bank of Long Island, and Webster Bank respectively. Within the portfolio, the bulk, or 54 percent of the 166,241 square feet of built space are walkup properties, with elevator properties next occupying 35 percent of the space. The bulk, or 89 percent of the built space, is in Manhattan, with Queens next at 11 percent of the space.

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