Shuhua Wu pays $5M for mixed-use in Sunset Park

Shuhua Wu through the entity 8 Ave Property Inc. paid $5 million to Lawrence Chan through the entity M&L Chan Corp. for the two-unit mixed-use building (S2) at 5814 8th Avenue in Sunset Park, Brooklyn. The expected use is cash flowing.
The deal closed on October 7, 2024 and was recorded on October 17, 2024. The property has 3,800 square feet of built space and 208 square feet of additional air rights for a total buildable of 3,888 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,310 and the price per buildable square foot is $1,280 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 Lawrence Chan was Lawrence Chan. The signatory for Shuhua Wu was Shuhua Wu. The contract date was August 12, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Shuhua Wu purchased one property in one transaction for a total of $1.9 million and has no record it sold any properties over the past 24 months.
The seller Lawrence Chan had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Mabel Chan, head officer and Lawrence Chan, officer. The business entity is M & L Chan Corp.

The property

The mixed-use building with 2 residential units in Sunset Park has 3,800 square feet of built space and 208 square feet of additional air rights for a total buildable of 3,888 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 80 feet deep with a total lot size of 1,600 square feet. 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 $1.2 million.

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 $325 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 Sunset Park, The bulk, or 30 percent of the 35 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 26 percent of the space. In sales, Sunset Park has 1.7 times the average sales volume among other neighborhoods with $427.5 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.It had -32,270 square feet of commercial and multi-family construction under development in the last two years, which represents -0.09 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 38 commercial properties representing 34,133 square feet of the 210,093 square feet. The largest owner is Bifeng Liu, followed by Huang Cheng and then Josip Longovich As Trustee.
There are no active new building construction projects on this tax block.

The majority, or 42 percent of the 210,093 square feet of built space are mixed-use buildings, with walkup buildings next occupying 41 percent of the space.

The buyer

The PincusCo database currently indicates that Shuhua Wu owned at least two commercial properties with 37 residential units in New York City with 40,952 square feet and a city-determined market value of $4.8 million. (Market value is typically about 50% of actual value.) The portfolio has $5.8 million in debt, borrowed from Cathay Bank. Within the portfolio, the bulk, or 89 percent of the 40,952 square feet of built space are elevator properties, with mixed-use properties next occupying 11 percent of the space. They are all located in Brooklyn.

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