Sandhu Group pays $4.8M for possible dev site in Gravesend

Sandhu Group through the entity 86 St NY LLC paid $4.8 million to Valentina Lvovsky through the entity 2501 86 Street LLC for the office building (O7) at 2501-2511 86th Street in Gravesend, Brooklyn.
The deal closed on February 14, 2023 and was recorded on February 28, 2023. The property has 6,165 square feet of built space and 13,800 square feet of additional air rights for a total buildable of 20,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $778 and the price per buildable square foot is $240 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 Valentina Lvovsky was Valentina Lvovsky. The signatory for Sandhu Group was Tejpal Sandhu.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Sandhu Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Valentina Lvovsky had not purchased any other properties and had not sold any properties over the same time period. The 6,165-square-foot property generated revenue of $200,424 or $33 per square foot, according to the most recent income and expense figures.

The property

The 2501-2511 86th Street parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. 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 $823,000.

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 Gravesend, the bulk, or 39 percent of the 18.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Gravesend has near average sales volume among other neighborhoods with $347.1 million in sales volume in the last two years and is the 21st highest in Brooklyn. For development, Gravesend has 1.3 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Brooklyn. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

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

The majority, or 64 percent of the 28,247 square feet of built space are retail buildings, with office buildings next occupying 22 percent of the space.

The buyer

The PincusCo database currently indicates that Sandhu Group owned at least six commercial properties in New York City with 27,827 square feet and a city-determined market value of $3.8 million. (Market value is typically about 50% of actual value.) The portfolio has $45.6 million in debt, borrowed from Tideway Capital Group and Crown Bank. Within the portfolio, the bulk, or 100 percent of the 27,827 square feet of built space are hotel properties, with development properties next occupying 0 percent of the space. They are all located in Queens.

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