Park Slope Associates pays $2.2M for mixed-use in Bedford Stuyvesant

Park Slope Associates through the entity 648 Chauncey Properties 2017 LLC paid $2.2 million to Kieran Treanor and Damien Smith through the entity Dk 1172 Fulton LLC for the three-unit mixed-use building (S3) at 1172 Fulton Street in Bedford Stuyvesant, Brooklyn.
The deal closed on May 18, 2023 and was recorded on June 9, 2023. The property has 3,920 square feet of built space and 2,800 square feet of additional air rights for a total buildable of 6,720 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $561 and the price per buildable square foot is $327 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 April 21, 2017, for $1.9 million. The signatory for Kieran Treanor and Damien Smith was Kieran Treanor and Damien Smith. The signatory for 648 Chauncey Properties 2017 LLC was Jonathan Somerstein.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Kieran Treanor had not purchased any other properties and sold one properties in one transactions for a total of $2.6 million over the same time period. The former owner according to the Department of Housing Preservation and Development is Kieran Treanor, head officer. The business entity is DK 1172 Fulton Street Llc.

The property

The mixed-use building with 3 residential units in Bedford Stuyvesant has 3,920 square feet of built space and 2,800 square feet of additional air rights for a total buildable of 6,720 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 80 feet deep with a total lot size of 1,600 square feet. The zoning is R7D which allows for up to 4.2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $455,000.

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 one DOB violation 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 Bedford Stuyvesant, The bulk, or 35 percent of the 54.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has 2.7 times the average sales volume among other neighborhoods with $960.1 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Bedford Stuyvesant has 3.3 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space. There were two 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 11 of the 22 commercial properties representing 200,870 square feet of the 245,210 square feet. The largest owner is L+M Development Partners, followed by KKR & Co. and then Jeanne Chou.
There are no active new building construction projects on this tax block.

The majority, or 67 percent of the 245,210 square feet of built space are elevator buildings, with mixed-use buildings next occupying 21 percent of the space.

The seller

The PincusCo database currently indicates that Damien Smith owned at least two commercial properties in New York City with 14,800 square feet and a city-determined market value of $1.4 million. (Market value is typically about 50% of actual value.) The portfolio has $33 million in debt, borrowed from Valley National Bank. Within the portfolio, the bulk, or 100 percent of the 14,800 square feet of built space are industrial properties, with development properties next occupying 0 percent of the space. They are all located in Queens.
The PincusCo database currently indicates that Kieran Treanor owned at least one commercial property with eight residential units in New York City with 5,499 square feet and a city-determined market value of $1.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Brooklyn.

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