Platinum Realty Associates pays $2.4M for retail in Mott Haven

Platinum Realty Associates through the entity 486 Brook Ave LLC paid $2.4 million to Yu Hua Wu through the entity 7468 General Inc. for the retail building (K1) at 481-489 Brook Avenue in Mott Haven, Bronx.
The deal closed on November 14, 2023 and was recorded on November 28, 2023. The property has 6,727 square feet of built space and 9,619 square feet of additional air rights for a total buildable of 16,346 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $349 and the price per buildable square foot is $143 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 Yu Hua Wu was Yu Hua Wu. The signatory for Platinum Realty Associates was David Koptiev. The contract date was August 17, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Platinum Realty Associates purchased five properties in five transactions for a total of $23.5 million and sold three properties in three transactions for a total of $16.4 million over the past 24 months.
The seller Yu Hua Wu had not purchased any other properties and had not sold any properties over the same time period. The 6,727-square-foot property generated revenue of $130,642 or $19 per square foot, according to the most recent income and expense figures.

The property

The retail building in Mott Haven has 6,727 square feet of built space and 9,619 square feet of additional air rights for a total buildable of 16,346 square feet according to a PincusCo analysis of city data. The parcel has frontage of 74 feet and is 90 feet deep with a total lot size of 6,727 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.1 million.

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 $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 $1 million on this tax lot.

The neighborhood

In Mott Haven, The bulk, or 45 percent of the 41.7 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 23 percent of the space. In sales, Mott Haven has 2 times the average sales volume among other neighborhoods with $716 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven has 1.2 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Bronx. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 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 this tax block, PincusCo has identified the owners of five of the 12 commercial properties representing 200,197 square feet of the 396,863 square feet. The largest owner is Steve Zervoudis, followed by New York City Housing Authority and then Lemle & Wolff Companies.
On the tax block, there was one new building construction project filed totaling 88,914 square feet. It is a 101-unit, 88,914 square-foot residential (R-2) building submitted by New York City Housing Authority and filed by Matthew Charney with plans filed December 4, 2018 and permitted January 10, 2022.

The majority, or 39 percent of the 396,863 square feet of built space are elevator buildings, with walkup buildings next occupying 30 percent of the space.

The buyer

The PincusCo database currently indicates that Platinum Realty Associates owned at least 79 commercial properties with 42 residential units in New York City with 604,140 square feet and a city-determined market value of $104.2 million. (Market value is typically about 50% of actual value.) The portfolio has $43.8 million in debt, borrowed from Signature Bank and First National Bank of Long Island. Within the portfolio, the bulk, or 55 percent of the 604,140 square feet of built space are retail properties, with office properties next occupying 29 percent of the space. The bulk, or 74 percent of the built space, is in Queens, with Brooklyn next at 23 percent of the space.

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