Peak Capital Advisors pays $2.8M for residential walkup in Greenpoint

Peak Capital Advisors through the entity 94 Milton Owner LLC paid $2.8 million to Joseph Smieszek through the entity 94 Milton Street LLC for the midblock eight-unit residential walkup building at 94 Milton Street in Greenpoint, Brooklyn.
The deal closed on April 29, 2022 and was recorded on June 15, 2022. The property has 7,500 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $366 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 Joseph Smieszek was Joseph Smieszek. The signatory for Peak Capital Advisors was David Gomez.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Peak Capital Advisors purchased 13 properties in 11 transactions for a total of $73 million and has no record it sold any properties over the past 24 months.
The seller Joseph Smieszek 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 Joseph Smieszek, head officer and Julia Smieszek, officer. The business entity is 94 Milton Street Llc. The 7,500-square-foot property generated revenue of $167,025 or $22 per square foot, according to the most recent income and expense figures.

The property

The 94 Milton Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 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 Greenpoint Historic District. The city-designated market value for the property in 2022 is $3 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 received two housing violations and $50 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 $5 million on this tax lot.

The neighborhood

In Greenpoint, the bulk, or 23 percent of the 29.6 million square feet of commercial built space are residential walkup buildings, with industrial buildings next occupying 21 percent of the space. In sales, Greenpoint has 1.6 times the average sales volume among other neighborhoods with $450.6 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, Greenpoint has 3.7 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 11 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 17 of the 23 commercial properties representing 125,691 square feet of the 166,129 square feet. The largest owner is John Szalyga, followed by Helen Waltos and then Joseph Smieszek. There is one active new building construction project totaling 4,975 square feet. It is a three-unit, 4,975-square-foot R-2 building developed by Roei Paz with plans filed July 7, 2017 and it has not been permitted yet.

The majority, or 46 percent of the 305,602 square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 31 percent of the space.

The seller

The PincusCo database currently indicates that Joseph Smieszek owned at least one commercial property with 7,500 square feet and a city-determined market value of $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.

The buyer

The PincusCo database currently indicates that Peak Capital Advisors owned at least 14 commercial properties with 144,481 square feet and a city-determined market value of $39 million. (Market value is typically about 50% of actual value.) The portfolio has $46.6 million in debt, with top three lenders as Prime Finance Partners, Walker & Dunlop, and Patriot Bank respectively. Within the portfolio, the bulk, or 91 percent of the 144,481 square feet of built space are walkup properties, with mixed-use properties next occupying 9 percent of the space. The bulk, or 43 percent of the built space, is in Manhattan, with Brooklyn next at 39 percent of the space.

Surrounding

PincusCo has not identified any commerCial real estate items of interest within a 400-foot radius of 94 Milton Street that occurred over the past 24 months.

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