Red Hook bankruptcy filed for parcels bought for $3M in 2018

The owner of two adjacent parcels at 195 Bush Street and 623 Clinton Street in Red Hook, Brooklyn, purchased in 2018 for $3 million, filed to place the owner entity Red Hook Equites LLC into bankruptcy protection yesterday. The move comes nearly two years after the state’s New York Business Development Corportation filed to foreclose on a $1.5 million small business loan it gave to Red Hook Sign and Electric Corp., which is located at the site and shares an executive, Grigory Vekker.
Case 512024/2022 LINK

Bankruptcy 1-24-40630-ess LINK

Grigory Vekker through the entity Red Hook Equites LLC bought the two adjacent properties in 2018 for $3 million. Court records also include the spelling Red Hook Equities LLC, but the property buyer and borrower was Red Hook Equites LLC.

The parcels are across Bush Street from a 225,260-square-foot CubeSmart storage building and across Clinton Street from the New York City Housing Authority’s large Red Hook East complex.

The property

The parcel has frontage of 60 feet and is 90 feet deep with a total lot size of 5,400 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $328,000.

Prior sales and revenue

This property was sold with another property for $3 million on December 27, 2018.

Development

Over the past five years, there has been no NYC Department of Buildings new building, demolition, or alteration permit application valued at more than $20,000 filed for this parcel.

Violations and lawsuits

According to city public data, the property has not received any significant violations in the last year.

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $1.5 million commercial foreclosure concerning a loan filed on April 26, 2022, by NEW YORK BUSINESS DEVELOPMENT CORPORATION against Sandra Fernandez-Pena.

The neighborhood

In Red Hook, The bulk, or 49 percent of the 9.4 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 30 percent of the space. In sales, Red Hook has near average sales volume among other neighborhoods with $491.5 million in sales volume in the last two years and is the 14th highest in Brooklyn. For development, Red Hook has near average amount of major developments among other neighborhoods and is the 22nd highest in Brooklyn. It had 552,400 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The surrounding

This is the first commercial real estate event of interest identified within the 400-foot radius of 183 Bush Street in the past 24 months.

Direct link to the property’s ACRIS page and link to DOB NOW portal.