NHK Realty pays $4.2M for mixed-use in Prospect Heights

NHK Realty, with Samie Lau as president and Bailey So as treasurer, paid $4.2 million to Dennis McGlone through the entity St. Marks Realty Partners, LLC for the three-unit mixed-use building (S3) at 605 Carlton Avenue in Prospect Heights, Brooklyn.
The deal closed on June 16, 2022 and was recorded on June 30, 2022. The property has 4,972 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $844 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 August 12, 2004, for $1.2 million. The signatory for Dennis McGlone was Sandor Krauss. The signatory for Samie Lau, NHK Realty, and Bailey So was Bailey So. Samie Lau was identified as president of NHK Realty Inc. in 1998. Bailey So is identified as treasurer.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer NHK Realty had purchased any other properties and has one record it sold a property for $9 million over the past 24 months.
The seller Dennis McGlone 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 Dennis Mcglone, head officer and Deborah Williamson, officer. The business entities are St Marks Rlty Partners Llc and St. Marks Realty Partners Llc. The 4,972-square-foot property generated revenue of $154,182 or $31 per square foot, according to the most recent income and expense figures.

The property

The 605 Carlton Avenue parcel has frontage of 22 feet and is 86 feet deep with a total lot size of 1,892 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Prospect Heights Historic District. The city-designated market value for the property in 2022 is $1.9 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 Prospect Heights, the bulk, or 37 percent of the 11.8 million square feet of commercial built space are residential elevator buildings, with 1-4 family buildings next occupying 20 percent of the space. In sales, Prospect Heights has had very little sales volume relative to other neighborhoods with $65 million in sales volume in the last two years. For development, Prospect Heights has 3 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 2.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 23 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 19 commercial properties representing 15,278 square feet of the 64,234 square feet. The two identified owners are Danny Zelouf and Esther Bernstein. There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 317,048 square feet of built space are 1-4 family buildings, with mixed-use buildings next occupying 11 percent of the space.

Surrounding

Within a 400-foot radius of 605 Carlton Avenue, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a permit application filed on April 30, 2021 for the $295,200 renovation of 4,919-square-foot J-2 building with four residential units at 184 St Marks Avenue.

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