Peak Capital pays $2.5M for 6-unit walkup in Greenpoint, at least 7th purchase in 2 years

Peak Capital Advisors through the entity 586 Manhattan Owner LLC paid $2.5 million to Rozalia Wolinski for the midblock six-unit residential walkup building at 586 Manhattan Avenue in Greenpoint, Brooklyn.
The deal closed on March 23, 2022 and was recorded on April 4, 2022.

The property has 3,900 square feet of built space and 3,600 square feet of additional air rights for a total buildable of 7,500 square feet according to PincusCo analysis of city data. The sale price per built square foot is $641 and the price per buildable square foot is $333 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 Rozalia Wolinski was Rozalia Wolinski. The signatory for Peak Capital Advisors was Alex Rabin.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Peak Capital Advisors purchased six properties in six transactions for a total of $28 million and has no record it sold any properties over the past 24 months.
The seller Rozalia Wolinski had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Rozalia Wolinski, individual owner.

The property

The 586 Manhattan Avenue parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.6 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. 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 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 four of the 26 commercial properties representing 22,486 square feet of the 127,776 square feet. The two identified owners are Mann Group and Michael N. Kiselow. There is one active new building construction project totaling 5,022 square feet. It is a four-unit, 5,022-square-foot R-2 building developed by Declan Mcloughlin with plans filed December 15, 2015 and it has not been permitted yet.

The majority, or 51 percent of the 166,165 square feet of built space are mixed-use buildings, with residential walkup buildings next occupying 26 percent of the space.

The buyer

The PincusCo database currently indicates that Peak Capital Advisors owned at least seven commercial properties with 69,771 square feet and a city-determined market value of $19.1 million. (Market value is typically about 50% of actual value.) The portfolio has $20.1 million in debt, borrowed from Walker & Dunlop and IberiaBank. Within the portfolio, the bulk, or 82 percent of the 69,771 square feet of built space are residential walkup properties, with mixed-use properties next occupying 18 percent of the space. The bulk, or 75 percent of the built space, is in Brooklyn, with Queens next at 16 percent of the space.

Surrounding

Within a 400-foot radius of 586 Manhattan Avenue, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, one was for major renovation including a certificate of occupancy change. It was a permit issued on October 26, 2020 for the $283,000 renovation of 3,436-square-foot A-2 building with N/A residential units at 855 Lorimer Street.
Of those five items, four were loans above $5 million totaling $60.4 million. The most recent of the four was Philipp Haemmerle which borrowed $5.7 million from OceanFirst Bank secured by the 8,561-square-foot, six-unit mixed-use building (S5) on 888 Lorimer Street on March 4, 2022.

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