Odiljon Tursunov pays $34M to AB & Sons Group for two retail properties in Sheepshead Bay

Odiljon Tursunov through the entity 1100 KHW Brooklyn LLC paid $34 million to AB & Sons Group through the entity 1100-1114 Kh Owner LLC for the retail building (K1) at 1100 Kings Highway in Sheepshead Bay, Brooklyn and retail building (K1) at 2067 Coney Island Avenue in Sheepshead Bay, Brooklyn.
The deal closed on December 15, 2022 and was recorded on December 23, 2022. The two properties have 29,500 square feet of built space and 79,512 square feet of additional air rights for a total buildable of 109,100 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,152 and the price per buildable square foot is $311 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 AB & Sons Group was Eli Chetrit. The signatory for Odiljon Tursunov was Russ Nazrisho. Hyman Azar owns 1124 Kings Highway, two doors down. Odiljon Tursunov was the signatory for the owner entity on the $24 million purchase money loan from AB & Sons Group used to finance the purchase.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 1100 Kings Highway.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Odiljon Tursunov purchased two other properties for $40 million and has no record it sold any properties over the past 24 months.
The seller AB & Sons Group purchased two properties in one transactions for a total of $18 million and had not sold any properties over the same time period. The two properties with a total of 29,500 square feet of built space generated revenue of $2.5 million per year or $85 per square foot. The sale price per square foot was $1,153.

The property

The 1100 Kings Highway parcel has frontage of 108 feet and is 214 feet deep with a total lot size of 19,275 square feet. The lot is irregular. The zoning is C4-4A which allows for up to 4 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $9.1 million.The most recent loan totaled $16.2 million and was provided by Signature Bank on September 29, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. 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 Sheepshead Bay, the bulk, or 44 percent of the 26.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Sheepshead Bay has 1.4 times the average sales volume among other neighborhoods with $491.8 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Sheepshead Bay has had very little major development activity relative to other neighborhoods.It had 616,908 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

On the tax block of 1100 Kings Highway, PincusCo has identified the owners of three of the 23 commercial properties representing 44,250 square feet of the 127,106 square feet. The largest owner is Hyman Azar, followed by AB & Sons Group and then AB & Sons.
On the tax block, there was one new building construction project filed totaling 19,081 square feet. It is a 19,081-square-foot office (B) building developed by Fouad Barakat with plans filed February 28, 2020 and it has not been permitted yet.

The majority, or 49 percent of the 122,225 square feet of built space are retail buildings, with mixed-use buildings next occupying 36 percent of the space.

The seller

The PincusCo database currently indicates that AB & Sons Group owned at least five commercial properties with 145,562 square feet and a city-determined market value of $45.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 66 percent of the 145,562 square feet of built space are office properties, with retail properties next occupying 20 percent of the space. The bulk, or 66 percent of the built space, is in Manhattan, with Brooklyn next at 34 percent of the space.

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