Preschool affilate pays $3M to Bawabeh Realty for retail in Brownsville

1220 East New York Avenue (Credit - Google)

1220 East New York Avenue (Credit - Google)

Garey V. Ellis, the co-founder of the preschool Inner Force Tots, through the entity Morah.E, LLC paid $3 million to Bawabeh Realty Holdings through the entity Bermuda Realty No. 2 LLC for the retail building (O7) at 1220 East New York Avenue in Crown Heights, Brooklyn. The buyer entity is located at the address of Inner Force Tots, a building also owned by Bawabeh Realty Holdings, which is a block away on East New York Avenue.
The deal closed on August 16, 2023 and was recorded on August 24, 2023. The property has 4,648 square feet of built space and 4,647 square feet of additional air rights for a total buildable of 9,294 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $645 and the price per buildable square foot is $322 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 Bawabeh Realty Holdings was David Bawabeh. The signatory for the buyer was Garey V. Ellis. The contract date was March 26, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Garey V. Ellis had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Bawabeh Realty Holdings had not purchased any other properties and had not sold any properties over the same time period.

The property

The office building in Brownsville has 4,648 square feet of built space and 4,647 square feet of additional air rights for a total buildable of 9,294 square feet according to a PincusCo analysis of city data. The parcel has frontage of 52 feet and is 101 feet deep with a total lot size of 4,647 square feet. The lot is irregular. The zoning is C8-2 which allows for up to 2 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $597,000. The most recent loan totaled $44 million and was provided by Signature Bank on November 19, 2021.

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 Brownsville, The bulk, or 46 percent of the 28.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Brownsville has had very little sales volume relative to other neighborhoods with $115.4 million in sales volume in the last two years. For development, Brownsville has had very little major development activity relative to other neighborhoods.It had 823,163 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.

The block

On this tax block, PincusCo has identified the owners of three of the nine commercial properties representing 61,248 square feet of the 197,839 square feet. The largest owner is New York City Housing Authority, followed by Joseph Benjamin and then Bawabeh Realty Holdings.
There are no active new building construction projects on this tax block.

The majority, or 50 percent of the 197,839 square feet of built space are walkup buildings, with industrial buildings next occupying 25 percent of the space.

The seller

The PincusCo database currently indicates that Bawabeh Realty Holdings owned at least 14 commercial properties in New York City with 126,364 square feet and a city-determined market value of $22.7 million. (Market value is typically about 50% of actual value.) The portfolio has $44 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 57 percent of the 126,364 square feet of built space are retail properties, with office properties next occupying 24 percent of the space. They are all located in Brooklyn.

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