Shahid Mughal pays $4M for retail in Brighton Beach

Shahid Mughal through the entity 231 Neptune Ave LLC paid $4 million to Leonid Kapelushnik and Anna Kapelushnik through the entity Kalm Enterprise, LLC for the retail building (K1) at 231 Neptune Avenue in Brighton Beach, Brooklyn.
The deal closed on November 29, 2022 and was recorded on December 2, 2022. The property has 5,896 square feet of built space and 15,247 square feet of additional air rights for a total buildable of 21,172 square feet according to PincusCo analysis of city data. The sale price per built square foot is $678 and the price per buildable square foot is $188 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 Leonid Kapelushnik and Anna Kapelushnik was Leonid Kapelushnik and Anna Kapelushnik. The signatory for Shahid Mughal was Shahid Mughal.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Shahid Mughal had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Leonid Kapelushnik had not purchased any other properties and had not sold any properties over the same time period. The 5,896-square-foot property generated revenue of $171,153 or $29 per square foot, according to the most recent income and expense figures.

The property

The 231 Neptune Avenue parcel has frontage of 95 feet and is 91 feet deep with a total lot size of 8,713 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 $671,000.

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 Brighton Beach, the majority, or 58 percent of the 7.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 12 percent of the space. In sales, Brighton Beach has had very little sales volume relative to other neighborhoods with $90.5 million in sales volume in the last two years. For development, Brighton Beach has had very little major development activity relative to other neighborhoods.It had 619,840 square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the 11 commercial properties representing 18,996 square feet of the 90,617 square feet. The identified owner is Ariel Soudry.
There are no active new building construction projects on this tax block.

The majority, or 36 percent of the 90,617 square feet of built space are walkup buildings, with mixed-use buildings next occupying 30 percent of the space.

Direct link to Acris document. link