Red Rock Investments pays $6.5M to Urban Standard for retail in Park Slope

Red Rock Investments through the entity 207 5th Ave BK LLC paid $6.5 million to Urban Standard Capital through the entity USC 207 5th Property Owner LLC for the corner retail building (K2) at 207 5th Avenue in Park Slope, Brooklyn. This is the first purchase PincusCo has reported on for Red Rock Investments.
The deal closed on January 31, 2023 and was recorded on February 6, 2023. The property has 5,559 square feet of built space and 7,920 square feet of additional air rights for a total buildable of 13,500 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,160 and the price per buildable square foot is $477 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.)
Urban Standard Capital bought the property on May 11, 2021, for $8.5 million. The signatory for Urban Standard Capital was Seth Weissman. The signatory for Red Rock Investments was Amnon Parizat.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Red Rock Investments had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Urban Standard Capital purchased two properties in two transactions for a total of $11.8 million and had not sold any properties over the same time period. The 5,559-square-foot property generated revenue of $282,302 or $51 per square foot, according to the most recent income and expense figures.

The property

The 207 5th Avenue parcel has frontage of 37 feet and is 92 feet deep with a total lot size of 4,500 square feet. The lot is irregular. 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 $1.1 million.The most recent loan totaled $8.2 million and was provided by Usc 207 5th LLC on December 23, 2019.

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 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 Park Slope, the bulk, or 36 percent of the 9.8 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 26 percent of the space. In sales, Park Slope has 2 times the average sales volume among other neighborhoods with $667.3 million in sales volume in the last two years and is the 8th highest in Brooklyn. For development, Park Slope has had very little major development activity relative to other neighborhoods.It had 461,314 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 10 commercial properties representing 31,899 square feet of the 80,001 square feet. The largest owner is Urban Standard Capital, followed by Leonard Rutkowitz and then Ilya Tolmasov.
There are no active new building construction projects on this tax block.

The majority, or 70 percent of the 80,001 square feet of built space are walkup buildings, with mixed-use buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that Urban Standard Capital owned at least four commercial properties in New York City with 25,175 square feet and a city-determined market value of $3.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 73 percent of the 25,175 square feet of built space are walkup properties, with retail properties next occupying 27 percent of the space. The bulk, or 95 percent of the built space, is in Brooklyn, with Manhattan next at 5 percent of the space.

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