Peak Capital pays $3.3M for mixed-use in Greenpoint

Peak Capital Advisors through the entity 880 Manhattan Owner LLC paid $3.3 million to Mohammed S. Khan through the entity Agri-Health Corp. for the three-unit mixed-use building (S3) at 880 Manhattan Avenue in Greenpoint, Brooklyn.
The deal closed on December 15, 2022 and was recorded on December 28, 2022. The property has 4,332 square feet of built space and 3,489 square feet of additional air rights for a total buildable of 7,812 square feet according to PincusCo analysis of city data. The sale price per built square foot is $756 and the price per buildable square foot is $419 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 Mohammed S. Khan was Mohammed S. Khan. 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 21 properties in 18 transactions for a total of $112.8 million and has no record it sold any properties over the past 24 months.
The seller Mohammed S. Khan 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 Mohammed Khan, head officer and Anis Khan, agent. The business entity is Agri Health Corp. The 4,332-square-foot property generated revenue of $109,643 or $25 per square foot, according to the most recent income and expense figures.

The property

The 880 Manhattan Avenue parcel has frontage of 21 feet and is 124 feet deep with a total lot size of 2,604 square feet. The lot is irregular. The zoning is C4-3A which allows for up to 3 times floor area ratio (FAR) for commercial and up to 3 times 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 $1.8 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 $130 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 30 percent of the 22.7 million square feet of commercial built space are walkup buildings, with industrial buildings next occupying 27 percent of the space. In sales, Greenpoint has 1.9 times the average sales volume among other neighborhoods with $668.9 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Greenpoint has 3.1 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space. There was one 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 17 of the 27 commercial properties representing 91,190 square feet of the 145,654 square feet. The largest owner is Steve Goldman, followed by Stanley Sudol and then Ron D’Addario.
There are no active new building construction projects on this tax block.

The majority, or 77 percent of the 145,654 square feet of built space are mixed-use buildings, with retail buildings next occupying 20 percent of the space.

The buyer

The PincusCo database currently indicates that Peak Capital Advisors owned at least 22 commercial properties in New York City with 232,398 square feet and a city-determined market value of $58.2 million. (Market value is typically about 50% of actual value.) The portfolio has $94.7 million in debt, with top three lenders as Amalgamated Bank, Prime Finance Partners, and Prime Finance respectively. Within the portfolio, the bulk, or 95 percent of the 232,398 square feet of built space are walkup properties, with mixed-use properties next occupying 5 percent of the space. The bulk, or 42 percent of the built space, is in Brooklyn, with Queens next at 31 percent of the space.

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